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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. Actions that the government might take that would reduce the value of an investment
credit union
political risk
phishing
chapter 13
2. Investment choices that will be held for long periods
permanent investment
risk averse
market risk
investing risk
3. The maximum amount an insurance company will pay if you file a claim.
interest-rate risk
futures
coverage limit
put-and-take account
4. Brokers who provide clients with analysis and opinions
cash flow
risk management
social security tax
full-service broker
5. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
mutual funds
spyware
dividend
put-and-take account
6. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
delayed gratification
career
credit score
7. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
share draft account
permanent investment
savings
8. A technique used for estimating the number of years required to double your money at a given rate
portfolio
grace period
credit union
Rule of 72
9. Spreading risk among many types of investments; one way to minimize risk
market risk
well-know full-service brokers
periodic or occasional expenses
diversification
10. People trained to give investment advise based on your goals & age & lifestyle & etc
opportunity cost
financial advisers
speculative investments
credit report
11. A formal contract to repay borrowed money with interest at fixed intervals
bond
spending plan
well-know financial magazines
discount brokers
12. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
Series EE Savings Bond
checking account
share draft account
chapter 13
13. The unique passcode number you use to get access to your savings and/or checking account
permanent investment
Personal Identification Number - PIN
risk
Securities and Exchange Commission
14. The chance that inflation will rise faster than the rate of return on an investment
capital loss
interest-rate risk
bank
rate of return
15. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
values
compounding interest rate
dividend
deductible
16. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
checking account
coverage limit
Investing
ATM - Automatic Teller Machine
17. US treasury security that matures in 30 years
US Treasury Bonds
US Treasury Notes
inflation
credit report
18. A certificate documenting the shareholder's ownership in the corporation
credit union
discount brokers
credit score
stock
19. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
stock market
risk taker
credit union
spyware
20. The date on which the borrowed money must be repaid
penny stocks
Rule of 72
non-market risk
maturity date
21. Investing with a series of regular payments; usually associated with life insurance companies
principal
annuities
short term goal
US Treasury Bonds
22. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
chapter 13
mutual fund
Investing
23. A goal to be achieved within the next three months.
short term goal
chapter 7
grace period
principal
24. Management of investment alternatives to maximize the growth of your portfolio
annual report
strategic investing
initial investing
annual fee
25. The amount a corporation pays at a fixed amount when repaying a bond
interest
origination fee
APR - Average Percentage Rate
Series I Savings Bond
26. Investment choices that will be re-evaluated within a year or less
spyware
Temporary investment
dollar cost average
short term goal
27. Bold and high-risk investments
investor services
strategic investing
Investing
speculative investments
28. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
universal default
dividend
social security tax
29. Expenses that are not fixed.
investor services
time value of money
origination fee
variable expenses
30. Low-priced stocks of small companies that have no track record
strategic investing
annual fee
penny stocks
market risk
31. The probability that injury - damage - or loss will occur.
risk
stocks
cash flow
grace period
32. A term that describes investments on which earnings are not taxed until retirement
dividend
tax deferred
US Treasury Notes
well-know full-service brokers
33. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
universal default
dollar cost average
penny stocks
time value of money
34. Investors who are afraid to make investments
risk taker
values
interest
risk averse
35. The process of dealing with the chance of a potential personal or financial loss.
systematic investing
principal
yield
risk management
36. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
well-known discount brokers
credit
permanent investment
cash flow
37. Another term for budget
debit card
annual report
spending plan
permanent investment
38. The credit union term for a checking account.
share draft account
checking account
permanent investment
Securities and Exchange Commission
39. The portion of the profits paid to the shareholders of a company.
social security tax
Rule of 72
wants
dividend
40. The amount of money someone is willing to loan you.
rate of return
state income tax
principal
share draft account
41. A form of bankruptcy that allows you to erase most of your debt.
Series EE Savings Bond
bond
bank
chapter 7
42. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
short term goal
industry risk
Series EE Savings Bond
wants
43. Investment choices that will be held for long periods
discount brokers
well-known discount brokers
well-know full-service brokers
permanent investment
44. A payroll deduction collected by employers by law and sent to the state government to support state services.
share account
mutual funds
state income tax
capital gain
45. Conservative investing; used when you have 'excess' savings
initial investing
APR - Average Percentage Rate
US Treasury Notes
bankruptcy
46. Investors who take to take chances
credit limit
risk taker
credit limit
options
47. A goal to be achieved within the next three months.
options
portfolio
short term goal
corporate bonds
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.
share account
APR - Average Percentage Rate
inflation
opportunity cost
49. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
principal
credit score
US Treasury Notes
Rule of 72
50. The value of What is given up when you choose one option over another.
variable expenses
opportunity cost
company risk
coverage limit