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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. The maximum amount an insurance company will pay if you file a claim.
ATM - Automatic Teller Machine
coverage limit
credit
dollar cost average
2. Summary of a corporation's financial condition
state income tax
well-known financial newspapers
annual report
Temporary investment
3. Associated with owning stock of only one company
budget
mutual fund
company risk
municipal bonds
4. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
credit limit
diversification
capital loss
checking account
5. A term that describes investments on which earnings are not taxed until retirement
stocks
credit report
market risk
tax deferred
6. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
phishing
periodic or occasional expenses
bank
collectibles
7. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
annuities
US Treasury Notes
interest
8. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
debt
Series I Savings Bond
universal default
put-and-take account
9. The amount a corporation pays at a fixed amount when repaying a bond
annual fee
credit union
grace period
interest
10. The credit union term for a savings account.
share account
delayed gratification
over-the-limit fee
capital loss
11. A general and progressive increase in prices
municipal bonds
political risk
inflation
non-market risk
12. The entire amount of money you owe to lenders
US Treasury Bonds
initial investing
debt
political risk
13. 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.
grace period
savings account
checking account
credit
14. Debt obligations of state or local governments
deductible
pay yourself first - P.Y.F.
municipal bonds
Series EE Savings Bond
15. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
financial pages
dollar cost average
phishing
Rule of 72
16. Companies that provide extensive financial data to clients
yield
initial investing
investor services
share account
17. US treasury security that matures in 30 years
financial pages
mutual funds
US Treasury Bonds
principal
18. Management of investment alternatives to maximize the growth of your portfolio
US Treasury Bonds
strategic investing
well-know full-service brokers
dividend
19. The credit union term for a checking account.
risk
origination fee
share draft account
stocks
20. The increase or decrease in the original purchase price of an investment over a period of time.
budget
variable expenses
rate of return
spending plan
21. The value of What is given up when you choose one option over another.
US Treasury Notes
universal default
risk averse
opportunity cost
22. Property consisting of houses and land
real estate
non-market risk
financial pages
dividend
23. Amount of money that is set aside for future purchases
Investing
Rule of 72
savings
inflation
24. Charles Schwab & TD Ameritrade & E*TRADE
risk management
corporate bonds
savings
well-known discount brokers
25. 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
financial pages
share account
dollar cost average
26. A payroll deduction collected by employers by law and sent to the state government to support state services.
full-service broker
state income tax
spyware
financial pages
27. Associated with owning stock of similar groups of businesses
US Treasury Bills
industry risk
annual report
credit
28. Newspapers list of securities
over-the-limit fee
financial pages
debt
permanent investment
29. A chosen pursuit - profession - or occupation
bankruptcy
savings
dollar cost average
career
30. Investors who take to take chances
phishing
spyware
risk taker
Investing
31. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
risk taker
political risk
stock
32. The date on which the borrowed money must be repaid
compounding interest rate
corporate bonds
maturity date
portfolio
33. US treasury security that matures from a few days to one year
rate of return
time value of money
US Treasury Bills
real estate
34. The credit union term for a checking account.
opportunity cost
stock market
share draft account
pay yourself first - P.Y.F.
35. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
stock
chapter 13
principal
well-known investor services
36. The profit from an investment.
dividend
Series EE Savings Bond
futures
yield
37. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'
debit card
collectibles
diversification
credit report
38. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
APR - Average Percentage Rate
non-market risk
credit score
39. The probability that injury - damage - or loss will occur.
risk
well-know full-service brokers
systematic investing
speculative investments
40. The unique passcode number you use to get access to your savings and/or checking account
origination fee
Personal Identification Number - PIN
stocks
debit card
41. Actions that the government might take that would reduce the value of an investment
permanent investment
political risk
permanent investment
compounding interest rate
42. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
well-know full-service brokers
annual fee
rate of return
phishing
43. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
coverage limit
dollar cost average
checking account
debit card
44. Debt obligations of state or local governments
credit score
satellite decisions
risk
municipal bonds
45. Low-priced stocks of small companies that have no track record
risk taker
initial investing
penny stocks
APR - Average Percentage Rate
46. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
credit history
investor services
Securities and Exchange Commission
47. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
risk
well-known financial newspapers
ATM - Automatic Teller Machine
48. Reducing investment risk by putting money in several different types of investments.
non-market risk
diversification
time value of money
principal
49. The maximum amount an insurance company will pay if you file a claim.
coverage limit
mutual funds
mutual fund
well-known discount brokers
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.
deductible
APR - Average Percentage Rate
credit limit
savings