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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. 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.
compounding interest rate
portfolio
mutual fund
principal
2. Bold and high-risk investments
coverage limit
speculative investments
dollar cost average
diversification
3. Charles Schwab & TD Ameritrade & E*TRADE
credit report
Rule of 72
well-known discount brokers
annual report
4. Investing with a series of regular payments; usually associated with life insurance companies
stocks
annuities
risk
portfolio
5. 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.
debit card
Rule of 72
options
diversification
6. Collection of investments
Rule of 72
portfolio
bankruptcy
spending plan
7. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
municipal bonds
collectibles
capital loss
8. Management of investment alternatives to maximize the growth of your portfolio
systematic investing
strategic investing
US Treasury Bonds
US Treasury Bonds
9. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
risk taker
inflation
grace period
options
10. The belief - qualities - or standards that you consider important or desirable.
social security tax
values
Rule of 72
capital loss
11. A general and progressive increase in prices
Personal Identification Number - PIN
annuities
investing risk
inflation
12. The chance that an investment's value will decrease
satellite decisions
options
investing risk
Investing
13. The amount of money someone is willing to loan you.
principal
credit score
APR - Average Percentage Rate
variable expenses
14. Companies that provide extensive financial data to clients
bank
investor services
well-know financial magazines
options
15. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
time value of money
maturity date
share draft account
mutual fund
16. Reducing investment risk by putting money in several different types of investments.
US Treasury Bonds
well-known financial newspapers
diversification
Temporary investment
17. Losses in an investment as a result of the business cycle
debt
company risk
market risk
interest-rate risk
18. Earning interest on interest.
municipal bonds
compounding interest rate
universal default
credit union
19. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
coverage limit
speculative investments
capital loss
social security tax
20. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
bankruptcy
stock
bankruptcy
21. US treasury security that matures in 30 years
well-known discount brokers
full-service broker
US Treasury Bonds
chapter 13
22. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
bankruptcy
financial advisers
credit union
23. Expenses that are not fixed.
debt
periodic or occasional expenses
variable expenses
well-know financial magazines
24. Summary of a corporation's financial condition
annual report
values
principal
tax deferred
25. A spending plan for managing money during a given period of time.
budget
interest
diversification
Personal Identification Number - PIN
26. The date on which the borrowed money must be repaid
coverage limit
diversification
credit union
maturity date
27. Wall Street Journal and Barron's
well-known financial newspapers
savings account
deductible
annual fee
28. Maximum amount of credit a lender will extend to a customer.
savings
credit limit
Rule of 72
systematic investing
29. Uncontrollable and unpredictable events that cause an investment to lose value
political risk
short term goal
wants
non-market risk
30. Investors who are afraid to make investments
non-market risk
well-known discount brokers
risk averse
over-the-limit fee
31. The amount a corporation borrowed in a bond situation
principal
strategic investing
portfolio
Investing
32. 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.
diversification
penny stocks
spyware
Series I Savings Bond
33. The unique passcode number you use to get access to your savings and/or checking account
chapter 7
put-and-take account
annual fee
Personal Identification Number - PIN
34. A form of bankruptcy that allows you to erase most of your debt.
full-service broker
career
chapter 7
social security tax
35. A government sector that requires all public corporations to make annual reports available to their stockholders
real estate
Securities and Exchange Commission
Series EE Savings Bond
phishing
36. Low-priced stocks of small companies that have no track record
mutual fund
penny stocks
mutual fund
yield
37. Debt obligations of state or local governments
diversification
over-the-limit fee
opportunity cost
municipal bonds
38. 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.
ATM - Automatic Teller Machine
corporate bonds
Rule of 72
savings
39. Investing with a series of regular payments; usually associated with life insurance companies
annuities
risk taker
capital gain
investor services
40. The process of dealing with the chance of a potential personal or financial loss.
company risk
systematic investing
risk management
strategic investing
41. The value of What is given up when you choose one option over another.
opportunity cost
discount brokers
risk
company risk
42. Spreading risk among many types of investments; one way to minimize risk
share draft account
US Treasury Bonds
diversification
collectibles
43. Property consisting of houses and land
real estate
Rule of 72
options
pay yourself first - P.Y.F.
44. Merrill Lynch & Fidelity Investments & American Express
US Treasury Bonds
well-know full-service brokers
strategic investing
spyware
45. Coins & art & memorabilia or other items that are popular from time to time
credit score
collectibles
over-the-limit fee
universal default
46. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
spyware
speculative investments
dollar cost average
risk averse
47. A spending plan for managing money during a given period of time.
budget
stocks
rate of return
universal default
48. Conservative investing; used when you have 'excess' savings
debt
initial investing
origination fee
systematic investing
49. Business Weekly & Forbes & Money
chapter 7
well-know financial magazines
risk management
savings
50. Movement of money you receive and the money you spend
chapter 13
cash flow
origination fee
credit score