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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. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
risk taker
bank
US Treasury Bonds
ATM - Automatic Teller Machine
2. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
well-known investor services
time value of money
Temporary investment
3. Brokers who provided little or no information to clients
debt
discount brokers
wants
futures
4. A payroll deduction collected by employers by law and sent to the state government to support state services.
savings
budget
state income tax
variable expenses
5. An amount that credit card companies can charge for the use of a credit card.
annual fee
principal
state income tax
cash flow
6. A summary of a person's borrowing and repayment history.
well-know financial magazines
universal default
checking account
credit history
7. Wall Street Journal and Barron's
well-known financial newspapers
US Treasury Bonds
well-known discount brokers
options
8. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
time value of money
checking account
stocks
US Treasury Bonds
9. The increase or decrease in the original purchase price of an investment over a period of time.
social security tax
rate of return
savings account
wants
10. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
compounding interest rate
Rule of 72
dollar cost average
budget
11. Spreading risk among many types of investments; one way to minimize risk
credit union
permanent investment
interest-rate risk
diversification
12. Smaller decisions that can result from a major decision.
Personal Identification Number - PIN
rate of return
principal
satellite decisions
13. Reducing investment risk by putting money in several different types of investments.
principal
Securities and Exchange Commission
bond
diversification
14. Brokers who provide clients with analysis and opinions
stock market
full-service broker
savings
market risk
15. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
non-market risk
credit history
credit union
16. Movement of money you receive and the money you spend
well-know full-service brokers
cash flow
bankruptcy
share account
17. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
deductible
chapter 13
credit union
penny stocks
18. Debt obligations of corporations
Series I Savings Bond
corporate bonds
credit score
maturity date
19. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
capital loss
well-know full-service brokers
credit score
20. Conservative investing; used when you have 'excess' savings
US Treasury Bills
initial investing
interest
share account
21. A technique used for estimating the number of years required to double your money at a given rate
risk management
variable expenses
Rule of 72
full-service broker
22. Brokers who provide clients with analysis and opinions
wants
universal default
full-service broker
company risk
23. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
debit card
annual report
chapter 13
24. A goal to be achieved within the next three months.
Rule of 72
speculative investments
municipal bonds
short term goal
25. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
capital loss
credit
interest-rate risk
bank
26. Charles Schwab & TD Ameritrade & E*TRADE
grace period
share account
well-known investor services
well-known discount brokers
27. Expenses that aren't paid every month and can be either fixed or variable.
market risk
periodic or occasional expenses
options
grace period
28. US treasury security that matures in 2 & 5 & or 10 years
share draft account
wants
bank
US Treasury Notes
29. US treasury security that matures from a few days to one year
financial pages
portfolio
US Treasury Bills
credit history
30. The use of long-term savings to earn a financial return
municipal bonds
savings
stocks
Investing
31. The amount of money someone is willing to loan you.
financial advisers
principal
initial investing
spending plan
32. A spending plan for managing money during a given period of time.
budget
real estate
ATM - Automatic Teller Machine
state income tax
33. Collection of investments
portfolio
discount brokers
market risk
wants
34. A certificate documenting the shareholder's ownership in the corporation
savings
mutual fund
state income tax
stock
35. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
stock
US Treasury Bonds
credit union
put-and-take account
36. The unique passcode number you use to get access to your savings and/or checking account
investing risk
over-the-limit fee
Personal Identification Number - PIN
satellite decisions
37. Fee on credit card for making charges above your credit limit.
over-the-limit fee
interest-rate risk
chapter 13
interest
38. A term that describes investments on which earnings are not taxed until retirement
tax deferred
well-known investor services
well-known financial newspapers
options
39. Debt obligations of state or local governments
risk taker
variable expenses
municipal bonds
risk
40. 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.
discount brokers
bank
APR - Average Percentage Rate
Temporary investment
41. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
credit limit
penny stocks
rate of return
42. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
investing risk
credit
tax deferred
compounding interest rate
43. Companies that provide extensive financial data to clients
corporate bonds
investor services
coverage limit
Series I Savings Bond
44. Expenses that are not fixed.
penny stocks
dollar cost average
variable expenses
ATM - Automatic Teller Machine
45. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
short term goal
risk averse
ATM - Automatic Teller Machine
46. The entire amount of money you owe to lenders
speculative investments
debt
well-known investor services
risk taker
47. The chance that an investment's value will decrease
social security tax
collectibles
wants
investing risk
48. US treasury security that matures from a few days to one year
US Treasury Bills
well-known financial newspapers
origination fee
share account
49. A technique used for estimating the number of years required to double your money at a given rate
systematic investing
dividend
Rule of 72
Series EE Savings Bond
50. Associated with owning stock of only one company
company risk
annual fee
collectibles
checking account