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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 chance that an investment's value will decrease
investing risk
credit history
systematic investing
Rule of 72
2. A certificate documenting the shareholder's ownership in the corporation
inflation
stock
non-market risk
investing risk
3. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
initial investing
origination fee
credit score
over-the-limit fee
4. The date on which the borrowed money must be repaid
maturity date
credit limit
stocks
Personal Identification Number - PIN
5. Movement of money you receive and the money you spend
cash flow
credit union
bankruptcy
US Treasury Bonds
6. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
opportunity cost
financial advisers
APR - Average Percentage Rate
7. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
dividend
credit union
discount brokers
8. The probability that injury - damage - or loss will occur.
risk
credit union
budget
market risk
9. The process of dealing with the chance of a potential personal or financial loss.
risk management
pay yourself first - P.Y.F.
portfolio
stock
10. The place where stocks are bought and sold.
debt
stock market
short term goal
company risk
11. A chosen pursuit - profession - or occupation
opportunity cost
career
futures
rate of return
12. Earning interest on interest.
compounding interest rate
initial investing
options
debit card
13. Investment choices that will be re-evaluated within a year or less
values
inflation
annuities
Temporary investment
14. The entire amount of money you owe to lenders
municipal bonds
credit union
origination fee
debt
15. A term that describes investments on which earnings are not taxed until retirement
bond
budget
ATM - Automatic Teller Machine
tax deferred
16. Newspapers list of securities
maturity date
full-service broker
universal default
financial pages
17. A formal contract to repay borrowed money with interest at fixed intervals
market risk
inflation
bond
dividend
18. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
debt
real estate
US Treasury Bonds
19. Regular and planned investments
systematic investing
company risk
dollar cost average
Securities and Exchange Commission
20. Brokers who provided little or no information to clients
wants
mutual fund
discount brokers
US Treasury Bonds
21. An amount that credit card companies can charge for the use of a credit card.
risk
annual fee
yield
stocks
22. Management of investment alternatives to maximize the growth of your portfolio
debt
universal default
strategic investing
budget
23. The use of long-term savings to earn a financial return
phishing
put-and-take account
Investing
well-known discount brokers
24. Debt obligations of corporations
investor services
rate of return
corporate bonds
risk averse
25. 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
savings
opportunity cost
satellite decisions
26. Actions that the government might take that would reduce the value of an investment
share account
variable expenses
political risk
well-known discount brokers
27. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
speculative investments
short term goal
political risk
ATM - Automatic Teller Machine
28. The place where stocks are bought and sold.
stock market
non-market risk
annuities
pay yourself first - P.Y.F.
29. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
periodic or occasional expenses
initial investing
cash flow
grace period
30. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
portfolio
stock market
deductible
ATM - Automatic Teller Machine
31. Fee on credit card for making charges above your credit limit.
spyware
industry risk
stocks
over-the-limit fee
32. Losses in an investment as a result of the business cycle
social security tax
options
capital loss
market risk
33. A summary of a person's borrowing and repayment history.
risk taker
diversification
US Treasury Notes
credit history
34. The credit union term for a savings account.
company risk
credit union
maturity date
share account
35. 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.
real estate
universal default
savings account
well-know financial magazines
36. A legal process to get out of debt when you can no longer make all your required payments.
bankruptcy
company risk
delayed gratification
interest-rate risk
37. 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.
APR - Average Percentage Rate
chapter 7
delayed gratification
annual fee
38. The increase or decrease in the original purchase price of an investment over a period of time.
coverage limit
rate of return
checking account
credit score
39. People trained to give investment advise based on your goals & age & lifestyle & etc
systematic investing
financial advisers
opportunity cost
Personal Identification Number - PIN
40. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
over-the-limit fee
cash flow
state income tax
41. A technique used for estimating the number of years required to double your money at a given rate
Rule of 72
annual report
phishing
debit card
42. Brokers who provided little or no information to clients
discount brokers
annual report
chapter 7
yield
43. 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
strategic investing
compounding interest rate
municipal bonds
44. Investors who take to take chances
principal
risk taker
diversification
corporate bonds
45. A government sector that requires all public corporations to make annual reports available to their stockholders
well-known discount brokers
portfolio
Securities and Exchange Commission
share draft account
46. US treasury security that matures in 2 & 5 & or 10 years
permanent investment
US Treasury Notes
interest-rate risk
ATM - Automatic Teller Machine
47. 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
social security tax
options
portfolio
48. Coins & art & memorabilia or other items that are popular from time to time
grace period
collectibles
spyware
delayed gratification
49. Collection of investments
mutual funds
options
pay yourself first - P.Y.F.
portfolio
50. Business Weekly & Forbes & Money
chapter 13
well-know financial magazines
well-know full-service brokers
budget