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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. Newspapers list of securities
US Treasury Bonds
financial advisers
financial pages
universal default
2. People trained to give investment advise based on your goals & age & lifestyle & etc
discount brokers
time value of money
financial advisers
market risk
3. Pooling of money from many investors to buy a large & diverse selection of securities
investor services
mutual funds
municipal bonds
bank
4. Investors who are afraid to make investments
risk averse
credit report
share draft account
capital gain
5. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
universal default
cash flow
market risk
6. 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
variable expenses
chapter 13
dividend
7. A summary of a person's borrowing and repayment history.
credit history
share draft account
corporate bonds
company risk
8. The chance that inflation will rise faster than the rate of return on an investment
time value of money
interest-rate risk
over-the-limit fee
credit report
9. Fee on credit card for making charges above your credit limit.
over-the-limit fee
compounding interest rate
maturity date
dollar cost average
10. 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.
Rule of 72
spyware
yield
compounding interest rate
11. A bank account against which the depositor can draw checks payable on demand.
checking account
systematic investing
opportunity cost
delayed gratification
12. 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.'
put-and-take account
debit card
Securities and Exchange Commission
well-know financial magazines
13. Earning interest on interest.
Temporary investment
compounding interest rate
penny stocks
satellite decisions
14. Merrill Lynch & Fidelity Investments & American Express
investing risk
real estate
well-know full-service brokers
US Treasury Bills
15. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
rate of return
Investing
grace period
Rule of 72
16. Uncontrollable and unpredictable events that cause an investment to lose value
corporate bonds
industry risk
annual fee
non-market risk
17. The entire amount of money you owe to lenders
mutual fund
annual fee
risk management
debt
18. Debt obligations of corporations
penny stocks
well-known discount brokers
US Treasury Bills
corporate bonds
19. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
bankruptcy
Investing
chapter 13
speculative investments
20. The unique passcode number you use to get access to your savings and/or checking account
universal default
Personal Identification Number - PIN
discount brokers
debt
21. The increase or decrease in the original purchase price of an investment over a period of time.
rate of return
universal default
tax deferred
mutual funds
22. Actions that the government might take that would reduce the value of an investment
political risk
industry risk
stock market
put-and-take account
23. 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.
career
political risk
social security tax
diversification
24. Smaller decisions that can result from a major decision.
satellite decisions
market risk
chapter 7
APR - Average Percentage Rate
25. Standard and Poor's and Moody's
budget
Temporary investment
well-known investor services
credit union
26. Property consisting of houses and land
real estate
risk
checking account
credit score
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.
pay yourself first - P.Y.F.
political risk
APR - Average Percentage Rate
credit union
28. Brokers who provide clients with analysis and opinions
full-service broker
cash flow
universal default
stock market
29. The amount a corporation pays at a fixed amount when repaying a bond
satellite decisions
systematic investing
interest
yield
30. Regular and planned investments
career
systematic investing
over-the-limit fee
deductible
31. 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.
futures
over-the-limit fee
ATM - Automatic Teller Machine
APR - Average Percentage Rate
32. Smaller decisions that can result from a major decision.
bank
grace period
dividend
satellite decisions
33. Reducing investment risk by putting money in several different types of investments.
bankruptcy
short term goal
diversification
industry risk
34. Another term for budget
ATM - Automatic Teller Machine
risk management
credit report
spending plan
35. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
stock market
origination fee
put-and-take account
debit card
36. Uncontrollable and unpredictable events that cause an investment to lose value
share draft account
non-market risk
initial investing
well-known investor services
37. The maximum amount an insurance company will pay if you file a claim.
coverage limit
principal
well-known discount brokers
debit card
38. The increase or decrease in the original purchase price of an investment over a period of time.
capital gain
options
rate of return
credit report
39. A legal process to get out of debt when you can no longer make all your required payments.
annual fee
well-known financial newspapers
wants
bankruptcy
40. Investment choices that will be held for long periods
credit history
stocks
permanent investment
annuities
41. Amount of money that is set aside for future purchases
political risk
share account
Series I Savings Bond
savings
42. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
Rule of 72
annual fee
Personal Identification Number - PIN
43. 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.
Rule of 72
full-service broker
credit limit
annual report
44. 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.
risk taker
chapter 13
mutual fund
savings account
45. Investing with a series of regular payments; usually associated with life insurance companies
state income tax
maturity date
wants
annuities
46. A general and progressive increase in prices
variable expenses
inflation
compounding interest rate
penny stocks
47. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
risk management
market risk
market risk
48. Bold and high-risk investments
Investing
stock market
speculative investments
risk averse
49. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
stock
bankruptcy
phishing
50. Spreading risk among many types of investments; one way to minimize risk
diversification
principal
tax deferred
market risk