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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. Uncontrollable and unpredictable events that cause an investment to lose value
put-and-take account
investor services
non-market risk
cash flow
2. Associated with owning stock of only one company
capital loss
company risk
financial advisers
satellite decisions
3. A payroll deduction collected by employers by law and sent to the state government to support state services.
credit
stocks
state income tax
well-known investor services
4. Another term for budget
spending plan
US Treasury Bills
risk
interest-rate risk
5. Losses in an investment as a result of the business cycle
wants
stocks
market risk
share account
6. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
well-known financial newspapers
wants
origination fee
grace period
7. US treasury security that matures in 2 & 5 & or 10 years
satellite decisions
deductible
inflation
US Treasury Notes
8. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
US Treasury Bonds
deductible
principal
9. Coins & art & memorabilia or other items that are popular from time to time
speculative investments
collectibles
well-know financial magazines
options
10. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
credit score
interest
put-and-take account
debt
11. 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
options
diversification
capital loss
12. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
credit
ATM - Automatic Teller Machine
interest-rate risk
yield
13. Brokers who provided little or no information to clients
options
bank
discount brokers
annual report
14. A detailed record of your personal credit and financial transactions.
credit report
mutual funds
credit
tax deferred
15. The chance that an investment's value will decrease
debt
discount brokers
investing risk
full-service broker
16. Merrill Lynch & Fidelity Investments & American Express
spyware
principal
well-know full-service brokers
collectibles
17. A form of bankruptcy that allows you to erase most of your debt.
coverage limit
chapter 7
yield
risk
18. Conservative investing; used when you have 'excess' savings
initial investing
Series EE Savings Bond
ATM - Automatic Teller Machine
interest
19. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
credit
options
bank
well-know financial magazines
20. The value of What is given up when you choose one option over another.
phishing
interest
mutual fund
opportunity cost
21. Investors who are afraid to make investments
stocks
risk averse
credit score
inflation
22. 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
collectibles
Rule of 72
dollar cost average
23. The maximum amount an insurance company will pay if you file a claim.
portfolio
deductible
coverage limit
yield
24. The amount of money someone is willing to loan you.
principal
well-know financial magazines
options
systematic investing
25. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
dividend
options
initial investing
systematic investing
26. Wall Street Journal and Barron's
dollar cost average
origination fee
well-known financial newspapers
budget
27. Collection of investments
cash flow
portfolio
variable expenses
delayed gratification
28. The amount a corporation borrowed in a bond situation
credit limit
deductible
satellite decisions
principal
29. A general and progressive increase in prices
inflation
discount brokers
principal
phishing
30. Conservative investing; used when you have 'excess' savings
savings
initial investing
permanent investment
opportunity cost
31. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
non-market risk
grace period
credit history
32. The belief - qualities - or standards that you consider important or desirable.
values
debt
career
well-know financial magazines
33. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
over-the-limit fee
time value of money
short term goal
permanent investment
34. A goal to be achieved within the next three months.
dividend
inflation
short term goal
grace period
35. The probability that injury - damage - or loss will occur.
stock market
debt
risk
investing risk
36. 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.
risk taker
stock
principal
mutual fund
37. The credit union term for a checking account.
share draft account
Series EE Savings Bond
chapter 7
risk management
38. Debt obligations of corporations
financial pages
credit report
corporate bonds
short term goal
39. 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.
annuities
spyware
interest
US Treasury Bills
40. The use of long-term savings to earn a financial return
US Treasury Bills
credit
US Treasury Bonds
Investing
41. Collection of investments
Series I Savings Bond
yield
portfolio
spending plan
42. Expenses that are not fixed.
Series EE Savings Bond
credit union
Series I Savings Bond
variable expenses
43. Debt obligations of state or local governments
municipal bonds
bond
well-known financial newspapers
Investing
44. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.
municipal bonds
put-and-take account
savings account
well-know financial magazines
45. Movement of money you receive and the money you spend
bond
speculative investments
options
cash flow
46. People trained to give investment advise based on your goals & age & lifestyle & etc
cash flow
financial advisers
investing risk
dollar cost average
47. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
principal
risk taker
Series EE Savings Bond
US Treasury Notes
48. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.
bankruptcy
stock
APR - Average Percentage Rate
investor services
49. 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 pages
risk management
diversification
50. A term that describes investments on which earnings are not taxed until retirement
spyware
capital loss
values
tax deferred