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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. 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
time value of money
Temporary investment
pay yourself first - P.Y.F.
2. Fee on credit card for making charges above your credit limit.
over-the-limit fee
full-service broker
put-and-take account
mutual funds
3. Standard and Poor's and Moody's
Temporary investment
compounding interest rate
well-known investor services
Investing
4. Management of investment alternatives to maximize the growth of your portfolio
strategic investing
debt
bond
cash flow
5. Pooling of money from many investors to buy a large & diverse selection of securities
well-known investor services
mutual funds
Series I Savings Bond
debt
6. Brokers who provide clients with analysis and opinions
full-service broker
credit score
over-the-limit fee
put-and-take account
7. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
rate of return
risk taker
diversification
chapter 13
8. The maximum amount an insurance company will pay if you file a claim.
compounding interest rate
financial advisers
coverage limit
delayed gratification
9. Associated with owning stock of similar groups of businesses
US Treasury Bills
Rule of 72
budget
industry risk
10. The amount of money someone is willing to loan you.
principal
checking account
well-know financial magazines
APR - Average Percentage Rate
11. A certificate documenting the shareholder's ownership in the corporation
municipal bonds
stock
coverage limit
put-and-take account
12. The date on which the borrowed money must be repaid
maturity date
collectibles
capital gain
annual report
13. The chance that an investment's value will decrease
chapter 7
market risk
investing risk
diversification
14. Contacts to buy and sell commodities or stocks for a specific price on a specific date
interest-rate risk
futures
spending plan
initial investing
15. Investment choices that will be re-evaluated within a year or less
Temporary investment
penny stocks
credit limit
budget
16. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
dividend
penny stocks
well-known financial newspapers
17. A formal contract to repay borrowed money with interest at fixed intervals
collectibles
permanent investment
bond
variable expenses
18. A government sector that requires all public corporations to make annual reports available to their stockholders
savings account
rate of return
Securities and Exchange Commission
career
19. A payroll deduction collected by employers by law and sent to the state government to support state services.
diversification
permanent investment
state income tax
debt
20. US treasury security that matures in 30 years
bond
US Treasury Bonds
chapter 13
risk averse
21. A unit of ownership in a corporation
put-and-take account
stocks
savings
variable expenses
22. 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.
over-the-limit fee
mutual fund
principal
social security tax
23. The credit union term for a savings account.
spending plan
wants
share account
investor services
24. A bank account against which the depositor can draw checks payable on demand.
checking account
share draft account
company risk
bond
25. The profit from an investment.
social security tax
rate of return
bond
yield
26. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
risk taker
well-known investor services
rate of return
27. Debt obligations of state or local governments
bankruptcy
municipal bonds
options
futures
28. The entire amount of money you owe to lenders
over-the-limit fee
state income tax
debt
mutual fund
29. The unique passcode number you use to get access to your savings and/or checking account
credit
penny stocks
Personal Identification Number - PIN
bond
30. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
put-and-take account
state income tax
grace period
well-known investor services
31. Conservative investing; used when you have 'excess' savings
non-market risk
initial investing
Securities and Exchange Commission
Investing
32. Companies that provide extensive financial data to clients
investor services
dividend
deductible
financial pages
33. The chance that an investment's value will decrease
checking account
social security tax
Securities and Exchange Commission
investing risk
34. A detailed record of your personal credit and financial transactions.
spyware
credit report
Series I Savings Bond
risk taker
35. A legal process to get out of debt when you can no longer make all your required payments.
penny stocks
bankruptcy
principal
savings account
36. A government sector that requires all public corporations to make annual reports available to their stockholders
mutual fund
Securities and Exchange Commission
career
values
37. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
municipal bonds
mutual fund
Investing
38. Earning interest on interest.
variable expenses
financial advisers
origination fee
compounding interest rate
39. A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest.
savings account
credit limit
Rule of 72
discount brokers
40. US treasury security that matures from a few days to one year
discount brokers
US Treasury Bills
credit limit
Rule of 72
41. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
grace period
credit
rate of return
real estate
42. 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.
share account
options
spyware
investing risk
43. Investment choices that will be held for long periods
permanent investment
real estate
non-market risk
variable expenses
44. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
risk
corporate bonds
diversification
45. The credit union term for a savings account.
debit card
well-known discount brokers
state income tax
share account
46. 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.
rate of return
savings
spyware
delayed gratification
47. A general and progressive increase in prices
chapter 7
company risk
well-known discount brokers
inflation
48. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
interest-rate risk
Rule of 72
options
savings account
49. Newspapers list of securities
financial pages
rate of return
systematic investing
risk management
50. Amount of money that is set aside for future purchases
savings
periodic or occasional expenses
well-known investor services
bank