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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. The amount a corporation pays at a fixed amount when repaying a bond
annual fee
principal
portfolio
interest
2. Maximum amount of credit a lender will extend to a customer.
well-known investor services
mutual funds
Investing
credit limit
3. A chosen pursuit - profession - or occupation
risk
capital loss
savings account
career
4. Associated with owning stock of only one company
company risk
dividend
well-known investor services
variable expenses
5. US treasury security that matures in 30 years
budget
options
cash flow
US Treasury Bonds
6. The credit union term for a savings account.
credit score
share account
strategic investing
spyware
7. Merrill Lynch & Fidelity Investments & American Express
stock
well-know full-service brokers
principal
credit limit
8. Merrill Lynch & Fidelity Investments & American Express
dollar cost average
risk averse
well-know full-service brokers
bond
9. 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.
yield
mutual fund
debt
Rule of 72
10. Coins & art & memorabilia or other items that are popular from time to time
Series EE Savings Bond
savings
collectibles
Securities and Exchange Commission
11. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
APR - Average Percentage Rate
cash flow
ATM - Automatic Teller Machine
full-service broker
12. Fee on credit card for making charges above your credit limit.
grace period
over-the-limit fee
opportunity cost
US Treasury Bonds
13. A unit of ownership in a corporation
permanent investment
stocks
US Treasury Notes
compounding interest rate
14. Earning interest on interest.
debit card
mutual funds
compounding interest rate
well-known discount brokers
15. Summary of a corporation's financial condition
spending plan
annual report
rate of return
interest
16. A goal to be achieved within the next three months.
state income tax
short term goal
annual report
origination fee
17. Property consisting of houses and land
options
stock
dollar cost average
real estate
18. Smaller decisions that can result from a major decision.
tax deferred
satellite decisions
variable expenses
chapter 13
19. A general and progressive increase in prices
variable expenses
inflation
investing risk
industry risk
20. The chance that inflation will rise faster than the rate of return on an investment
capital loss
interest-rate risk
social security tax
industry risk
21. 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.
risk
dividend
social security tax
tax deferred
22. The date on which the borrowed money must be repaid
maturity date
APR - Average Percentage Rate
stock
career
23. The probability that injury - damage - or loss will occur.
Series EE Savings Bond
permanent investment
company risk
risk
24. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
Rule of 72
put-and-take account
capital loss
25. A summary of a person's borrowing and repayment history.
credit history
grace period
yield
municipal bonds
26. The setting aside of money for future use or other investments
tax deferred
pay yourself first - P.Y.F.
savings account
phishing
27. 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.
savings account
spyware
principal
options
28. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
rate of return
phishing
risk management
over-the-limit fee
29. Smaller decisions that can result from a major decision.
Investing
bankruptcy
delayed gratification
satellite decisions
30. The maximum amount an insurance company will pay if you file a claim.
yield
coverage limit
mutual funds
investor services
31. A term that describes investments on which earnings are not taxed until retirement
tax deferred
share draft account
values
credit report
32. A spending plan for managing money during a given period of time.
over-the-limit fee
budget
maturity date
permanent investment
33. A certificate documenting the shareholder's ownership in the corporation
Rule of 72
cash flow
stock
savings
34. Investors who take to take chances
risk taker
delayed gratification
credit union
chapter 13
35. US treasury security that matures in 30 years
portfolio
stock market
corporate bonds
US Treasury Bonds
36. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
dollar cost average
permanent investment
company risk
bankruptcy
37. Investors who are afraid to make investments
risk averse
credit
opportunity cost
full-service broker
38. Bold and high-risk investments
permanent investment
risk
Series I Savings Bond
speculative investments
39. Low-priced stocks of small companies that have no track record
mutual fund
penny stocks
strategic investing
delayed gratification
40. A legal process to get out of debt when you can no longer make all your required payments.
coverage limit
US Treasury Bonds
speculative investments
bankruptcy
41. Reducing investment risk by putting money in several different types of investments.
diversification
non-market risk
speculative investments
bankruptcy
42. A technique used for estimating the number of years required to double your money at a given rate
phishing
values
interest-rate risk
Rule of 72
43. The profit from an investment.
futures
Investing
yield
checking account
44. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
stock
grace period
corporate bonds
capital gain
45. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
maturity date
Series EE Savings Bond
coverage limit
ATM - Automatic Teller Machine
46. Associated with owning stock of only one company
market risk
US Treasury Bonds
company risk
share draft account
47. Wall Street Journal and Barron's
share draft account
bankruptcy
financial pages
well-known financial newspapers
48. Debt obligations of corporations
Securities and Exchange Commission
initial investing
corporate bonds
bond
49. The place where stocks are bought and sold.
stock market
delayed gratification
periodic or occasional expenses
credit report
50. A summary of a person's borrowing and repayment history.
credit history
financial advisers
ATM - Automatic Teller Machine
dollar cost average