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Test your basic knowledge |
Financial Literacy Basics
Start Test
Study First
Subjects
:
literacy
,
personal-finance
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Wall Street Journal and Barron's
well-known financial newspapers
corporate bonds
initial investing
US Treasury Bonds
2. The credit union term for a checking account.
state income tax
share draft account
chapter 7
debt
3. Investors who are afraid to make investments
risk averse
budget
time value of money
discount brokers
4. The value of What is given up when you choose one option over another.
opportunity cost
checking account
bank
diversification
5. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.
stocks
futures
well-known investor services
spyware
6. Business Weekly & Forbes & Money
Rule of 72
well-know financial magazines
career
spending plan
7. A form of bankruptcy that allows you to erase most of your debt.
chapter 7
debit card
market risk
cash flow
8. Earning interest on interest.
rate of return
US Treasury Bonds
principal
compounding interest rate
9. The amount a corporation pays at a fixed amount when repaying a bond
phishing
full-service broker
interest
satellite decisions
10. Regular and planned investments
Investing
systematic investing
origination fee
capital gain
11. The process of dealing with the chance of a potential personal or financial loss.
non-market risk
risk management
maturity date
compounding interest rate
12. The chance that an investment's value will decrease
mutual funds
compounding interest rate
mutual funds
investing risk
13. An amount that credit card companies can charge for the use of a credit card.
annual fee
state income tax
yield
yield
14. A formal contract to repay borrowed money with interest at fixed intervals
dividend
bond
US Treasury Bills
US Treasury Bills
15. The entire amount of money you owe to lenders
permanent investment
futures
debt
penny stocks
16. A term that describes investments on which earnings are not taxed until retirement
systematic investing
tax deferred
savings
capital loss
17. The belief - qualities - or standards that you consider important or desirable.
over-the-limit fee
values
principal
wants
18. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.
APR - Average Percentage Rate
pay yourself first - P.Y.F.
career
bankruptcy
19. The maximum amount an insurance company will pay if you file a claim.
capital gain
coverage limit
social security tax
mutual fund
20. A detailed record of your personal credit and financial transactions.
well-known investor services
annuities
mutual fund
credit report
21. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
risk averse
principal
discount brokers
Series EE Savings Bond
22. The probability that injury - damage - or loss will occur.
risk
Temporary investment
annuities
deductible
23. A summary of a person's borrowing and repayment history.
compounding interest rate
credit history
stock
futures
24. Losses in an investment as a result of the business cycle
coverage limit
diversification
market risk
phishing
25. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.
savings account
futures
compounding interest rate
annual report
26. Companies that provide extensive financial data to clients
spending plan
investor services
budget
ATM - Automatic Teller Machine
27. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.
credit report
mutual fund
compounding interest rate
maturity date
28. The profit from an investment.
wants
systematic investing
universal default
yield
29. A legal process to get out of debt when you can no longer make all your required payments.
risk
bankruptcy
mutual fund
compounding interest rate
30. Coins & art & memorabilia or other items that are popular from time to time
investing risk
US Treasury Bills
Investing
collectibles
31. Fee on credit card for making charges above your credit limit.
rate of return
over-the-limit fee
spending plan
delayed gratification
32. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
Rule of 72
debt
chapter 7
33. Property consisting of houses and land
Series EE Savings Bond
dollar cost average
Securities and Exchange Commission
real estate
34. Actions that the government might take that would reduce the value of an investment
mutual fund
systematic investing
state income tax
political risk
35. A certificate documenting the shareholder's ownership in the corporation
risk taker
stock
variable expenses
credit
36. US treasury security that matures in 30 years
dollar cost average
US Treasury Bonds
Securities and Exchange Commission
speculative investments
37. Brokers who provided little or no information to clients
well-know full-service brokers
systematic investing
compounding interest rate
discount brokers
38. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
coverage limit
well-known investor services
grace period
risk management
39. Regular and planned investments
opportunity cost
Investing
well-know financial magazines
systematic investing
40. The place where stocks are bought and sold.
portfolio
speculative investments
strategic investing
stock market
41. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.
social security tax
risk
variable expenses
capital loss
42. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
capital loss
Series EE Savings Bond
risk
bond
43. Losses in an investment as a result of the business cycle
portfolio
market risk
spending plan
annual report
44. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
career
capital gain
chapter 13
Rule of 72
45. Low-priced stocks of small companies that have no track record
US Treasury Notes
corporate bonds
penny stocks
wants
46. The chance that inflation will rise faster than the rate of return on an investment
credit score
risk averse
interest-rate risk
financial pages
47. Bold and high-risk investments
career
speculative investments
principal
credit score
48. Management of investment alternatives to maximize the growth of your portfolio
compounding interest rate
strategic investing
financial advisers
capital loss
49. A form of bankruptcy that allows you to erase most of your debt.
interest-rate risk
portfolio
coverage limit
chapter 7
50. A payroll deduction collected by employers by law and sent to the state government to support state services.
APR - Average Percentage Rate
bank
chapter 13
state income tax