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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. A goal to be achieved within the next three months.
interest
maturity date
US Treasury Notes
short term goal
2. US treasury security that matures in 2 & 5 & or 10 years
credit union
US Treasury Bonds
capital gain
US Treasury Notes
3. A legal process to get out of debt when you can no longer make all your required payments.
full-service broker
bankruptcy
mutual fund
APR - Average Percentage Rate
4. Summary of a corporation's financial condition
Temporary investment
spyware
well-known financial newspapers
annual report
5. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
credit
Series EE Savings Bond
stock market
time value of money
6. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
dividend
principal
periodic or occasional expenses
7. A bank account against which the depositor can draw checks payable on demand.
non-market risk
mutual fund
political risk
checking account
8. 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.
collectibles
Rule of 72
bankruptcy
full-service broker
9. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
interest
bankruptcy
US Treasury Notes
10. Debt obligations of corporations
systematic investing
corporate bonds
risk
put-and-take account
11. The belief - qualities - or standards that you consider important or desirable.
opportunity cost
values
spending plan
credit
12. A formal contract to repay borrowed money with interest at fixed intervals
wants
portfolio
bond
Securities and Exchange Commission
13. A summary of a person's borrowing and repayment history.
Temporary investment
real estate
credit history
credit
14. A certificate documenting the shareholder's ownership in the corporation
stock
universal default
state income tax
cash flow
15. A goal to be achieved within the next three months.
bank
strategic investing
short term goal
checking account
16. 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.
bank
Investing
APR - Average Percentage Rate
real estate
17. The profit from an investment.
Securities and Exchange Commission
yield
annual fee
investing risk
18. Companies that provide extensive financial data to clients
options
Securities and Exchange Commission
career
investor services
19. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
collectibles
chapter 13
spyware
20. Newspapers list of securities
compounding interest rate
financial pages
Investing
risk taker
21. Brokers who provide clients with analysis and opinions
capital gain
over-the-limit fee
full-service broker
Investing
22. Standard and Poor's and Moody's
financial pages
well-known investor services
principal
risk management
23. The credit union term for a checking account.
yield
share draft account
bankruptcy
credit union
24. The increase or decrease in the original purchase price of an investment over a period of time.
investor services
stocks
rate of return
cash flow
25. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
interest-rate risk
diversification
Securities and Exchange Commission
26. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
annuities
futures
debt
chapter 13
27. 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.
savings
risk
credit report
universal default
28. The unique passcode number you use to get access to your savings and/or checking account
collectibles
well-known financial newspapers
Personal Identification Number - PIN
principal
29. A chosen pursuit - profession - or occupation
credit limit
risk taker
real estate
career
30. Smaller decisions that can result from a major decision.
speculative investments
satellite decisions
discount brokers
diversification
31. A bank account against which the depositor can draw checks payable on demand.
Temporary investment
corporate bonds
debit card
checking account
32. A general and progressive increase in prices
inflation
political risk
systematic investing
delayed gratification
33. The credit union term for a savings account.
share account
opportunity cost
stock market
career
34. The place where stocks are bought and sold.
stock market
investing risk
collectibles
ATM - Automatic Teller Machine
35. The maximum amount an insurance company will pay if you file a claim.
Rule of 72
credit score
well-known investor services
coverage limit
36. Investment choices that will be re-evaluated within a year or less
state income tax
APR - Average Percentage Rate
stock market
Temporary investment
37. An amount that credit card companies can charge for the use of a credit card.
annual fee
Temporary investment
real estate
grace period
38. 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
Securities and Exchange Commission
US Treasury Bonds
stocks
39. Coins & art & memorabilia or other items that are popular from time to time
APR - Average Percentage Rate
collectibles
time value of money
dividend
40. The credit union term for a checking account.
coverage limit
Rule of 72
municipal bonds
share draft account
41. US treasury security that matures from a few days to one year
financial pages
investing risk
US Treasury Bills
discount brokers
42. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
savings
mutual funds
time value of money
options
43. A technique used for estimating the number of years required to double your money at a given rate
financial advisers
Rule of 72
debt
permanent investment
44. Investing with a series of regular payments; usually associated with life insurance companies
dollar cost average
annuities
bank
inflation
45. The portion of the profits paid to the shareholders of a company.
non-market risk
speculative investments
real estate
dividend
46. Low-priced stocks of small companies that have no track record
credit union
portfolio
mutual funds
penny stocks
47. Smaller decisions that can result from a major decision.
career
ATM - Automatic Teller Machine
well-known financial newspapers
satellite decisions
48. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
investor services
capital gain
permanent investment
Investing
49. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
debt
mutual funds
municipal bonds
50. Actions that the government might take that would reduce the value of an investment
ATM - Automatic Teller Machine
collectibles
political risk
inflation