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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. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
risk taker
strategic investing
interest
2. US treasury security that matures from a few days to one year
wants
phishing
US Treasury Bills
opportunity cost
3. Investors who are afraid to make investments
credit score
risk averse
rate of return
annual fee
4. Conservative investing; used when you have 'excess' savings
chapter 7
initial investing
strategic investing
discount brokers
5. Business Weekly & Forbes & Money
coverage limit
non-market risk
well-know financial magazines
universal default
6. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
stock
well-known financial newspapers
phishing
7. Fee on credit card for making charges above your credit limit.
credit
over-the-limit fee
company risk
diversification
8. Losses in an investment as a result of the business cycle
savings
diversification
market risk
US Treasury Bills
9. The use of long-term savings to earn a financial return
tax deferred
diversification
Investing
short term goal
10. Companies that provide extensive financial data to clients
credit score
variable expenses
tax deferred
investor services
11. The amount a corporation pays at a fixed amount when repaying a bond
Rule of 72
US Treasury Bills
interest
values
12. The credit union term for a checking account.
full-service broker
diversification
universal default
share draft account
13. A form of bankruptcy that allows you to erase most of your debt.
bankruptcy
chapter 7
inflation
well-know financial magazines
14. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
Series I Savings Bond
market risk
pay yourself first - P.Y.F.
origination fee
15. A chosen pursuit - profession - or occupation
rate of return
career
diversification
principal
16. The increase or decrease in the original purchase price of an investment over a period of time.
ATM - Automatic Teller Machine
risk averse
rate of return
market risk
17. Another term for budget
Rule of 72
share draft account
spending plan
social security tax
18. Regular and planned investments
put-and-take account
systematic investing
Securities and Exchange Commission
Rule of 72
19. A general and progressive increase in prices
penny stocks
pay yourself first - P.Y.F.
market risk
inflation
20. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
inflation
phishing
variable expenses
risk management
21. A government sector that requires all public corporations to make annual reports available to their stockholders
Rule of 72
corporate bonds
Securities and Exchange Commission
Investing
22. A spending plan for managing money during a given period of time.
universal default
annuities
credit union
budget
23. Summary of a corporation's financial condition
industry risk
Series EE Savings Bond
annual report
portfolio
24. US treasury security that matures in 2 & 5 & or 10 years
US Treasury Notes
risk averse
penny stocks
chapter 7
25. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
over-the-limit fee
well-known discount brokers
capital loss
26. The amount of money someone is willing to loan you.
well-know full-service brokers
share account
cash flow
principal
27. Newspapers list of securities
financial pages
interest
deductible
pay yourself first - P.Y.F.
28. Uncontrollable and unpredictable events that cause an investment to lose value
initial investing
checking account
non-market risk
capital loss
29. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
state income tax
Personal Identification Number - PIN
opportunity cost
ATM - Automatic Teller Machine
30. The date on which the borrowed money must be repaid
maturity date
stock
share account
spending plan
31. 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.
savings account
stock market
dividend
stock
32. 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
satellite decisions
tax deferred
credit score
33. Things that add comfort and pleasure to your life but you can live without if you need to.
annual fee
wants
risk averse
savings account
34. People trained to give investment advise based on your goals & age & lifestyle & etc
diversification
financial advisers
credit limit
portfolio
35. The chance that inflation will rise faster than the rate of return on an investment
penny stocks
risk averse
interest-rate risk
full-service broker
36. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
municipal bonds
time value of money
grace period
well-known financial newspapers
37. Investors who are afraid to make investments
spyware
municipal bonds
risk averse
Securities and Exchange Commission
38. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
yield
pay yourself first - P.Y.F.
savings account
39. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
risk averse
tax deferred
discount brokers
capital loss
40. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
industry risk
annual report
portfolio
options
41. The value of What is given up when you choose one option over another.
US Treasury Notes
opportunity cost
over-the-limit fee
full-service broker
42. The place where stocks are bought and sold.
stock market
financial advisers
phishing
over-the-limit fee
43. 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.
bankruptcy
principal
Temporary investment
social security tax
44. A bank account against which the depositor can draw checks payable on demand.
checking account
US Treasury Bills
strategic investing
industry risk
45. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
inflation
maturity date
initial investing
46. The place where stocks are bought and sold.
stock market
diversification
risk
systematic investing
47. Movement of money you receive and the money you spend
cash flow
wants
share draft account
risk taker
48. 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.
delayed gratification
mutual fund
permanent investment
maturity date
49. Debt obligations of state or local governments
US Treasury Bonds
financial advisers
municipal bonds
interest
50. 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.
well-known financial newspapers
savings account
capital loss
credit score