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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. Debt obligations of state or local governments
over-the-limit fee
municipal bonds
stock market
Rule of 72
2. A detailed record of your personal credit and financial transactions.
company risk
industry risk
short term goal
credit report
3. The place where stocks are bought and sold.
penny stocks
stock market
universal default
wants
4. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
budget
credit
put-and-take account
interest
5. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
debt
coverage limit
diversification
grace period
6. The unique passcode number you use to get access to your savings and/or checking account
industry risk
Personal Identification Number - PIN
stocks
US Treasury Bills
7. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
savings account
credit limit
share account
time value of money
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.
wants
Personal Identification Number - PIN
full-service broker
Rule of 72
9. Wall Street Journal and Barron's
speculative investments
well-known financial newspapers
well-know financial magazines
well-known discount brokers
10. Earning interest on interest.
compounding interest rate
annual report
municipal bonds
Series EE Savings Bond
11. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
values
investor services
ATM - Automatic Teller Machine
phishing
12. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
investing risk
periodic or occasional expenses
checking account
13. Business Weekly & Forbes & Money
options
risk averse
well-know financial magazines
diversification
14. Spreading risk among many types of investments; one way to minimize risk
diversification
opportunity cost
financial pages
origination fee
15. Collection of investments
savings account
investing risk
debt
portfolio
16. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
debt
Personal Identification Number - PIN
phishing
17. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
APR - Average Percentage Rate
annuities
mutual fund
18. Debt obligations of state or local governments
chapter 7
wants
municipal bonds
bankruptcy
19. The amount a corporation borrowed in a bond situation
industry risk
career
principal
portfolio
20. Investment choices that will be re-evaluated within a year or less
Temporary investment
capital gain
spyware
variable expenses
21. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
delayed gratification
full-service broker
ATM - Automatic Teller Machine
US Treasury Bonds
22. Investment choices that will be held for long periods
speculative investments
permanent investment
pay yourself first - P.Y.F.
budget
23. A certificate documenting the shareholder's ownership in the corporation
stock
annual report
coverage limit
APR - Average Percentage Rate
24. Business Weekly & Forbes & Money
credit history
interest
well-know financial magazines
full-service broker
25. 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
wants
risk
financial pages
26. Smaller decisions that can result from a major decision.
debt
options
capital loss
satellite decisions
27. 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.
well-known discount brokers
APR - Average Percentage Rate
short term goal
stock
28. Wall Street Journal and Barron's
well-known financial newspapers
strategic investing
mutual fund
over-the-limit fee
29. US treasury security that matures from a few days to one year
market risk
principal
US Treasury Bills
real estate
30. Losses in an investment as a result of the business cycle
time value of money
principal
market risk
spyware
31. The amount of money someone is willing to loan you.
options
risk
principal
phishing
32. Property consisting of houses and land
real estate
inflation
APR - Average Percentage Rate
share draft account
33. Maximum amount of credit a lender will extend to a customer.
capital loss
over-the-limit fee
financial advisers
credit limit
34. The value of What is given up when you choose one option over another.
credit report
opportunity cost
put-and-take account
full-service broker
35. A unit of ownership in a corporation
Temporary investment
stocks
opportunity cost
put-and-take account
36. Things that add comfort and pleasure to your life but you can live without if you need to.
savings
savings
Series EE Savings Bond
wants
37. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
APR - Average Percentage Rate
options
company risk
annual report
38. The use of long-term savings to earn a financial return
principal
mutual fund
company risk
Investing
39. Summary of a corporation's financial condition
US Treasury Bonds
annual report
US Treasury Bills
career
40. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
compounding interest rate
US Treasury Notes
initial investing
41. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
short term goal
strategic investing
dividend
42. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
Temporary investment
dollar cost average
cash flow
US Treasury Notes
43. A detailed record of your personal credit and financial transactions.
principal
credit report
chapter 7
credit
44. Pooling of money from many investors to buy a large & diverse selection of securities
pay yourself first - P.Y.F.
bank
company risk
mutual funds
45. Uncontrollable and unpredictable events that cause an investment to lose value
risk management
non-market risk
capital gain
career
46. Investment choices that will be re-evaluated within a year or less
Temporary investment
stocks
company risk
dollar cost average
47. A general and progressive increase in prices
inflation
principal
full-service broker
permanent investment
48. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
Series I Savings Bond
permanent investment
risk management
49. Regular and planned investments
ATM - Automatic Teller Machine
Rule of 72
non-market risk
systematic investing
50. 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.
well-know financial magazines
risk management
APR - Average Percentage Rate
stock