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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 of money someone is willing to loan you.
delayed gratification
principal
speculative investments
diversification
2. The chance that inflation will rise faster than the rate of return on an investment
ATM - Automatic Teller Machine
well-know financial magazines
periodic or occasional expenses
interest-rate risk
3. US treasury security that matures in 2 & 5 & or 10 years
debt
strategic investing
US Treasury Notes
checking account
4. Losses in an investment as a result of the business cycle
well-known financial newspapers
collectibles
market risk
systematic investing
5. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bond
satellite decisions
bank
investor services
6. Wall Street Journal and Barron's
state income tax
well-known financial newspapers
capital loss
Rule of 72
7. The belief - qualities - or standards that you consider important or desirable.
stock
values
share account
periodic or occasional expenses
8. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
non-market risk
savings
credit union
credit report
9. A technique used for estimating the number of years required to double your money at a given rate
portfolio
checking account
chapter 7
Rule of 72
10. The setting aside of money for future use or other investments
credit limit
pay yourself first - P.Y.F.
discount brokers
Securities and Exchange Commission
11. Amount of money that is set aside for future purchases
delayed gratification
US Treasury Notes
savings
interest
12. Coins & art & memorabilia or other items that are popular from time to time
satellite decisions
checking account
collectibles
diversification
13. People trained to give investment advise based on your goals & age & lifestyle & etc
bank
financial advisers
collectibles
over-the-limit fee
14. Spreading risk among many types of investments; one way to minimize risk
mutual fund
well-know financial magazines
diversification
risk taker
15. Brokers who provided little or no information to clients
options
discount brokers
spending plan
Series I Savings Bond
16. Summary of a corporation's financial condition
compounding interest rate
permanent investment
annual report
credit report
17. Associated with owning stock of only one company
stock
principal
phishing
company risk
18. US treasury security that matures from a few days to one year
US Treasury Notes
US Treasury Bills
savings
values
19. Contacts to buy and sell commodities or stocks for a specific price on a specific date
investing risk
corporate bonds
Rule of 72
futures
20. Expenses that are not fixed.
bankruptcy
values
annual report
variable expenses
21. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
initial investing
credit
credit score
Series I Savings Bond
22. 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.
stock market
universal default
satellite decisions
full-service broker
23. A certificate documenting the shareholder's ownership in the corporation
stock
checking account
short term goal
opportunity cost
24. Debt obligations of state or local governments
well-known financial newspapers
Rule of 72
dividend
municipal bonds
25. Expenses that are not fixed.
variable expenses
phishing
wants
market risk
26. A goal to be achieved within the next three months.
bond
compounding interest rate
municipal bonds
short term goal
27. Spreading risk among many types of investments; one way to minimize risk
collectibles
inflation
capital gain
diversification
28. A technique used for estimating the number of years required to double your money at a given rate
savings
speculative investments
Series EE Savings Bond
Rule of 72
29. Coins & art & memorabilia or other items that are popular from time to time
Rule of 72
collectibles
variable expenses
well-know full-service brokers
30. A general and progressive increase in prices
options
Temporary investment
inflation
savings
31. Regular and planned investments
systematic investing
mutual funds
annual fee
Series EE Savings Bond
32. People trained to give investment advise based on your goals & age & lifestyle & etc
annuities
financial advisers
stock
credit union
33. Pooling of money from many investors to buy a large & diverse selection of securities
values
credit limit
mutual funds
discount brokers
34. Property consisting of houses and land
non-market risk
Securities and Exchange Commission
credit history
real estate
35. The credit union term for a checking account.
Investing
share draft account
variable expenses
risk
36. Investors who take to take chances
share account
risk taker
well-known investor services
diversification
37. Debt obligations of corporations
interest-rate risk
grace period
corporate bonds
penny stocks
38. Brokers who provided little or no information to clients
capital gain
discount brokers
investing risk
yield
39. The portion of the profits paid to the shareholders of a company.
savings account
dividend
non-market risk
over-the-limit fee
40. A general and progressive increase in prices
grace period
bond
inflation
well-known financial newspapers
41. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
deductible
values
annual report
yield
42. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
budget
origination fee
credit report
principal
43. The amount a corporation borrowed in a bond situation
portfolio
principal
Rule of 72
Investing
44. A bank account against which the depositor can draw checks payable on demand.
annual fee
checking account
wants
stock
45. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
interest
strategic investing
put-and-take account
checking account
46. A bank account against which the depositor can draw checks payable on demand.
non-market risk
well-know financial magazines
checking account
full-service broker
47. Investing with a series of regular payments; usually associated with life insurance companies
checking account
Rule of 72
penny stocks
annuities
48. Reducing investment risk by putting money in several different types of investments.
inflation
bank
diversification
satellite decisions
49. The unique passcode number you use to get access to your savings and/or checking account
credit union
political risk
credit score
Personal Identification Number - PIN
50. Maximum amount of credit a lender will extend to a customer.
financial advisers
credit report
credit limit
annuities