SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
Search
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 spending plan for managing money during a given period of time.
phishing
career
budget
permanent investment
2. Pooling of money from many investors to buy a large & diverse selection of securities
US Treasury Notes
mutual funds
risk
well-known investor services
3. Debt obligations of state or local governments
universal default
chapter 13
stock market
municipal bonds
4. Maximum amount of credit a lender will extend to a customer.
credit limit
credit history
market risk
credit history
5. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
variable expenses
credit report
industry risk
6. US treasury security that matures in 30 years
maturity date
US Treasury Bonds
strategic investing
values
7. Wall Street Journal and Barron's
well-known financial newspapers
annuities
risk averse
annual report
8. Bold and high-risk investments
penny stocks
speculative investments
principal
credit history
9. Investment choices that will be re-evaluated within a year or less
Temporary investment
universal default
full-service broker
stock
10. Standard and Poor's and Moody's
credit union
coverage limit
portfolio
well-known investor services
11. Summary of a corporation's financial condition
rate of return
spending plan
full-service broker
annual report
12. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
capital gain
systematic investing
ATM - Automatic Teller Machine
periodic or occasional expenses
13. Investment choices that will be re-evaluated within a year or less
Temporary investment
career
well-know full-service brokers
US Treasury Bonds
14. The value of What is given up when you choose one option over another.
investor services
pay yourself first - P.Y.F.
opportunity cost
well-known financial newspapers
15. A technique used for estimating the number of years required to double your money at a given rate
debt
tax deferred
Rule of 72
savings account
16. The amount a corporation borrowed in a bond situation
well-know financial magazines
credit limit
principal
non-market risk
17. Bold and high-risk investments
bank
speculative investments
capital gain
bond
18. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
coverage limit
spyware
credit
credit history
19. Reducing investment risk by putting money in several different types of investments.
spending plan
corporate bonds
variable expenses
diversification
20. 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
APR - Average Percentage Rate
annuities
credit
21. Fee on credit card for making charges above your credit limit.
tax deferred
debt
over-the-limit fee
annual report
22. Earning interest on interest.
maturity date
Personal Identification Number - PIN
initial investing
compounding interest rate
23. Things that add comfort and pleasure to your life but you can live without if you need to.
stock market
capital gain
wants
permanent investment
24. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
risk taker
Rule of 72
Series EE Savings Bond
full-service broker
25. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
market risk
origination fee
budget
Investing
26. The place where stocks are bought and sold.
interest
stock market
dividend
speculative investments
27. The probability that injury - damage - or loss will occur.
chapter 7
risk
risk taker
spyware
28. A general and progressive increase in prices
well-known investor services
interest-rate risk
wants
inflation
29. Debt obligations of corporations
deductible
corporate bonds
short term goal
delayed gratification
30. 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.
deductible
ATM - Automatic Teller Machine
universal default
spending plan
31. Losses in an investment as a result of the business cycle
industry risk
market risk
spending plan
spyware
32. The credit union term for a checking account.
speculative investments
Rule of 72
share draft account
delayed gratification
33. 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.
Rule of 72
universal default
budget
time value of money
34. Another term for budget
systematic investing
state income tax
spending plan
dollar cost average
35. Merrill Lynch & Fidelity Investments & American Express
strategic investing
debit card
well-know full-service brokers
well-known financial newspapers
36. A detailed record of your personal credit and financial transactions.
Rule of 72
diversification
well-known financial newspapers
credit report
37. Earning interest on interest.
US Treasury Bills
social security tax
compounding interest rate
satellite decisions
38. Bonds designed for investors wanting to protect again inflation losses
periodic or occasional expenses
Series I Savings Bond
spending plan
diversification
39. Actions that the government might take that would reduce the value of an investment
company risk
Securities and Exchange Commission
political risk
industry risk
40. Property consisting of houses and land
dividend
real estate
corporate bonds
career
41. A detailed record of your personal credit and financial transactions.
deductible
debit card
grace period
credit report
42. A bank account against which the depositor can draw checks payable on demand.
savings
opportunity cost
diversification
checking account
43. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
maturity date
deductible
satellite decisions
non-market risk
44. Regular and planned investments
credit score
systematic investing
wants
time value of money
45. 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.
time value of money
pay yourself first - P.Y.F.
social security tax
collectibles
46. Conservative investing; used when you have 'excess' savings
municipal bonds
initial investing
budget
systematic investing
47. The increase or decrease in the original purchase price of an investment over a period of time.
rate of return
dollar cost average
opportunity cost
debit card
48. Expenses that are not fixed.
interest-rate risk
compounding interest rate
variable expenses
credit
49. A term that describes investments on which earnings are not taxed until retirement
spending plan
inflation
bond
tax deferred
50. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
dollar cost average
company risk
US Treasury Bills
delayed gratification