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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 portion of the profits paid to the shareholders of a company.
rate of return
capital gain
dividend
dollar cost average
2. US treasury security that matures in 30 years
credit union
capital gain
US Treasury Bonds
stock
3. A legal process to get out of debt when you can no longer make all your required payments.
credit union
credit limit
bankruptcy
permanent investment
4. A legal process to get out of debt when you can no longer make all your required payments.
short term goal
coverage limit
Personal Identification Number - PIN
bankruptcy
5. Business Weekly & Forbes & Money
US Treasury Bonds
well-know financial magazines
full-service broker
tax deferred
6. Brokers who provide clients with analysis and opinions
full-service broker
interest
career
portfolio
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.
Rule of 72
industry risk
chapter 13
market risk
8. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
debt
phishing
chapter 13
collectibles
9. Standard and Poor's and Moody's
systematic investing
credit history
well-known investor services
credit union
10. A certificate documenting the shareholder's ownership in the corporation
credit union
strategic investing
stock
discount brokers
11. The willingness to give up something you want now in return for something better in the future.
delayed gratification
credit history
grace period
debt
12. A government sector that requires all public corporations to make annual reports available to their stockholders
market risk
Securities and Exchange Commission
variable expenses
dollar cost average
13. Expenses that aren't paid every month and can be either fixed or variable.
ATM - Automatic Teller Machine
periodic or occasional expenses
portfolio
bond
14. Pooling of money from many investors to buy a large & diverse selection of securities
diversification
share account
variable expenses
mutual funds
15. A payroll deduction collected by employers by law and sent to the state government to support state services.
debt
penny stocks
state income tax
Securities and Exchange Commission
16. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
chapter 13
municipal bonds
values
17. Things that add comfort and pleasure to your life but you can live without if you need to.
pay yourself first - P.Y.F.
wants
well-known investor services
risk taker
18. A technique used for estimating the number of years required to double your money at a given rate
strategic investing
futures
market risk
Rule of 72
19. The belief - qualities - or standards that you consider important or desirable.
US Treasury Bonds
rate of return
risk taker
values
20. A form of bankruptcy that allows you to erase most of your debt.
financial pages
short term goal
budget
chapter 7
21. Investors who are afraid to make investments
Rule of 72
financial pages
risk averse
risk management
22. The date on which the borrowed money must be repaid
mutual funds
maturity date
credit score
interest-rate risk
23. The maximum amount an insurance company will pay if you file a claim.
coverage limit
well-know full-service brokers
grace period
options
24. Bonds designed for investors wanting to protect again inflation losses
initial investing
Series EE Savings Bond
Series I Savings Bond
checking account
25. Movement of money you receive and the money you spend
industry risk
compounding interest rate
share account
cash flow
26. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
US Treasury Bonds
Series I Savings Bond
career
27. US treasury security that matures in 2 & 5 & or 10 years
phishing
well-know financial magazines
debit card
US Treasury Notes
28. Property consisting of houses and land
US Treasury Notes
futures
real estate
checking account
29. A government sector that requires all public corporations to make annual reports available to their stockholders
social security tax
risk averse
Securities and Exchange Commission
share draft account
30. A unit of ownership in a corporation
stocks
chapter 13
credit report
Temporary investment
31. Associated with owning stock of similar groups of businesses
financial advisers
industry risk
state income tax
opportunity cost
32. Debt obligations of corporations
corporate bonds
periodic or occasional expenses
yield
non-market risk
33. An amount that credit card companies can charge for the use of a credit card.
phishing
credit union
annual fee
bankruptcy
34. The chance that an investment's value will decrease
savings account
credit union
investing risk
Rule of 72
35. 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.
universal default
financial advisers
rate of return
over-the-limit fee
36. The probability that injury - damage - or loss will occur.
ATM - Automatic Teller Machine
risk
origination fee
credit score
37. Coins & art & memorabilia or other items that are popular from time to time
state income tax
collectibles
risk
well-know full-service brokers
38. 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
futures
share account
non-market risk
39. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
financial pages
tax deferred
corporate bonds
dollar cost average
40. 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
market risk
stock market
compounding interest rate
41. Brokers who provided little or no information to clients
US Treasury Notes
opportunity cost
cash flow
discount brokers
42. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'
investing risk
capital gain
debit card
budget
43. Smaller decisions that can result from a major decision.
risk management
risk taker
satellite decisions
coverage limit
44. The increase or decrease in the original purchase price of an investment over a period of time.
risk management
rate of return
universal default
grace period
45. Spreading risk among many types of investments; one way to minimize risk
diversification
put-and-take account
investing risk
credit limit
46. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
futures
credit score
chapter 7
credit union
47. The setting aside of money for future use or other investments
career
annual fee
checking account
pay yourself first - P.Y.F.
48. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
Rule of 72
Series EE Savings Bond
savings
49. The process of dealing with the chance of a potential personal or financial loss.
corporate bonds
risk management
mutual funds
collectibles
50. Pooling of money from many investors to buy a large & diverse selection of securities
credit limit
inflation
mutual funds
non-market risk