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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. US treasury security that matures in 30 years
share account
Series EE Savings Bond
US Treasury Bonds
mutual funds
2. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
diversification
financial pages
career
options
3. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
stock market
US Treasury Notes
US Treasury Bills
capital gain
4. Expenses that aren't paid every month and can be either fixed or variable.
principal
periodic or occasional expenses
US Treasury Bonds
stocks
5. The amount a corporation borrowed in a bond situation
principal
mutual fund
tax deferred
political risk
6. A chosen pursuit - profession - or occupation
discount brokers
diversification
career
risk averse
7. Another term for budget
dividend
US Treasury Bills
well-know financial magazines
spending plan
8. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
share account
Rule of 72
short term goal
credit
9. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
share draft account
real estate
state income tax
10. 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.
interest
non-market risk
Securities and Exchange Commission
savings account
11. Conservative investing; used when you have 'excess' savings
social security tax
initial investing
phishing
real estate
12. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
real estate
diversification
phishing
time value of money
13. Summary of a corporation's financial condition
US Treasury Bonds
bond
annual report
compounding interest rate
14. The date on which the borrowed money must be repaid
stocks
values
maturity date
rate of return
15. Movement of money you receive and the money you spend
Series EE Savings Bond
cash flow
political risk
principal
16. The chance that inflation will rise faster than the rate of return on an investment
career
interest-rate risk
credit union
risk management
17. Contacts to buy and sell commodities or stocks for a specific price on a specific date
risk averse
Series EE Savings Bond
share account
futures
18. Expenses that are not fixed.
portfolio
variable expenses
Personal Identification Number - PIN
satellite decisions
19. A summary of a person's borrowing and repayment history.
well-known financial newspapers
credit history
debit card
Securities and Exchange Commission
20. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
dollar cost average
diversification
credit
21. Spreading risk among many types of investments; one way to minimize risk
speculative investments
principal
wants
diversification
22. A bank account against which the depositor can draw checks payable on demand.
stock market
discount brokers
yield
checking account
23. Expenses that are not fixed.
delayed gratification
interest-rate risk
Temporary investment
variable expenses
24. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
short term goal
collectibles
compounding interest rate
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.
capital loss
savings account
phishing
APR - Average Percentage Rate
26. The increase or decrease in the original purchase price of an investment over a period of time.
Rule of 72
rate of return
capital gain
maturity date
27. The belief - qualities - or standards that you consider important or desirable.
values
non-market risk
over-the-limit fee
industry risk
28. A technique used for estimating the number of years required to double your money at a given rate
time value of money
maturity date
Rule of 72
periodic or occasional expenses
29. The belief - qualities - or standards that you consider important or desirable.
values
discount brokers
Series I Savings Bond
non-market risk
30. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
ATM - Automatic Teller Machine
financial pages
credit union
Series EE Savings Bond
31. Associated with owning stock of similar groups of businesses
coverage limit
industry risk
wants
Rule of 72
32. Investors who take to take chances
annual report
tax deferred
municipal bonds
risk taker
33. Actions that the government might take that would reduce the value of an investment
political risk
social security tax
discount brokers
deductible
34. Charles Schwab & TD Ameritrade & E*TRADE
spyware
well-known discount brokers
diversification
Temporary investment
35. Uncontrollable and unpredictable events that cause an investment to lose value
market risk
non-market risk
debt
phishing
36. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
real estate
credit
deductible
bankruptcy
37. Investing with a series of regular payments; usually associated with life insurance companies
Rule of 72
annuities
US Treasury Bills
permanent investment
38. A spending plan for managing money during a given period of time.
cash flow
credit union
Rule of 72
budget
39. A technique used for estimating the number of years required to double your money at a given rate
mutual fund
industry risk
Rule of 72
capital loss
40. A clause included in many credit card company agreements that allows a credit card company to increase your interest rate if you make just one late payment.
periodic or occasional expenses
market risk
investing risk
universal default
41. Brokers who provide clients with analysis and opinions
full-service broker
strategic investing
credit
wants
42. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
time value of money
origination fee
penny stocks
bank
43. Debt obligations of state or local governments
municipal bonds
well-know financial magazines
spyware
principal
44. The amount of money someone is willing to loan you.
phishing
principal
well-know full-service brokers
Temporary investment
45. Earning interest on interest.
interest-rate risk
dollar cost average
compounding interest rate
phishing
46. The portion of the profits paid to the shareholders of a company.
deductible
origination fee
dividend
ATM - Automatic Teller Machine
47. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
bond
budget
credit union
deductible
48. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
budget
dollar cost average
grace period
origination fee
49. The credit union term for a checking account.
deductible
chapter 7
chapter 13
share draft account
50. Things that add comfort and pleasure to your life but you can live without if you need to.
origination fee
deductible
wants
mutual fund