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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. Movement of money you receive and the money you spend
cash flow
full-service broker
grace period
stocks
2. Low-priced stocks of small companies that have no track record
financial advisers
ATM - Automatic Teller Machine
cash flow
penny stocks
3. A technique used for estimating the number of years required to double your money at a given rate
options
cash flow
Rule of 72
opportunity cost
4. The amount of money someone is willing to loan you.
market risk
strategic investing
stocks
principal
5. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
ATM - Automatic Teller Machine
Rule of 72
deductible
well-known financial newspapers
6. Bold and high-risk investments
Rule of 72
speculative investments
dividend
risk management
7. Business Weekly & Forbes & Money
stocks
spending plan
well-know financial magazines
US Treasury Bonds
8. The setting aside of money for future use or other investments
principal
US Treasury Notes
stocks
pay yourself first - P.Y.F.
9. An amount that credit card companies can charge for the use of a credit card.
futures
credit history
annual fee
Investing
10. Newspapers list of securities
bank
US Treasury Notes
financial pages
capital loss
11. The use of long-term savings to earn a financial return
periodic or occasional expenses
Investing
stocks
bond
12. Debt obligations of state or local governments
credit history
municipal bonds
well-known financial newspapers
savings
13. 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.
spyware
periodic or occasional expenses
risk management
variable expenses
14. The process of dealing with the chance of a potential personal or financial loss.
real estate
yield
risk management
inflation
15. Losses in an investment as a result of the business cycle
market risk
initial investing
short term goal
well-known investor services
16. US treasury security that matures in 30 years
spyware
career
share account
US Treasury Bonds
17. Reducing investment risk by putting money in several different types of investments.
permanent investment
diversification
tax deferred
savings account
18. Earning interest on interest.
mutual fund
well-known investor services
grace period
compounding interest rate
19. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
US Treasury Bills
put-and-take account
credit
periodic or occasional expenses
20. The amount a corporation borrowed in a bond situation
grace period
well-known discount brokers
credit report
principal
21. Conservative investing; used when you have 'excess' savings
initial investing
APR - Average Percentage Rate
career
systematic investing
22. A detailed record of your personal credit and financial transactions.
credit report
phishing
social security tax
financial advisers
23. Pooling of money from many investors to buy a large & diverse selection of securities
ATM - Automatic Teller Machine
well-known financial newspapers
diversification
mutual funds
24. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
put-and-take account
bankruptcy
well-know financial magazines
principal
25. The portion of the profits paid to the shareholders of a company.
deductible
budget
rate of return
dividend
26. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
discount brokers
penny stocks
risk
capital gain
27. Merrill Lynch & Fidelity Investments & American Express
risk averse
well-know full-service brokers
stock
US Treasury Bills
28. Collection of investments
time value of money
portfolio
Rule of 72
universal default
29. US treasury security that matures from a few days to one year
values
variable expenses
US Treasury Bills
dividend
30. A general and progressive increase in prices
bond
inflation
yield
discount brokers
31. US treasury security that matures in 2 & 5 & or 10 years
chapter 13
debit card
stock
US Treasury Notes
32. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
collectibles
values
credit score
spending plan
33. Wall Street Journal and Barron's
annuities
well-known financial newspapers
Personal Identification Number - PIN
credit history
34. Charles Schwab & TD Ameritrade & E*TRADE
Series I Savings Bond
dividend
diversification
well-known discount brokers
35. A technique used for estimating the number of years required to double your money at a given rate
Rule of 72
universal default
options
investing risk
36. The chance that inflation will rise faster than the rate of return on an investment
US Treasury Bills
coverage limit
interest-rate risk
company risk
37. Coins & art & memorabilia or other items that are popular from time to time
coverage limit
full-service broker
capital gain
collectibles
38. The profit from an investment.
short term goal
phishing
inflation
yield
39. A goal to be achieved within the next three months.
speculative investments
strategic investing
checking account
short term goal
40. The belief - qualities - or standards that you consider important or desirable.
speculative investments
wants
values
cash flow
41. A payroll deduction collected by employers by law and sent to the state government to support state services.
short term goal
Series EE Savings Bond
Personal Identification Number - PIN
state income tax
42. Regular and planned investments
US Treasury Bonds
discount brokers
universal default
systematic investing
43. The unique passcode number you use to get access to your savings and/or checking account
chapter 7
maturity date
Personal Identification Number - PIN
tax deferred
44. The amount a corporation borrowed in a bond situation
principal
grace period
well-know financial magazines
savings account
45. A term that describes investments on which earnings are not taxed until retirement
spending plan
well-know full-service brokers
tax deferred
investor services
46. A legal process to get out of debt when you can no longer make all your required payments.
systematic investing
political risk
bankruptcy
company risk
47. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
diversification
interest
credit union
48. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
non-market risk
chapter 13
stocks
share draft account
49. A form of bankruptcy that allows you to erase most of your debt.
share account
Personal Identification Number - PIN
permanent investment
chapter 7
50. A goal to be achieved within the next three months.
well-know full-service brokers
collectibles
career
short term goal