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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 financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit history
values
credit union
well-known investor services
2. The credit union term for a checking account.
budget
pay yourself first - P.Y.F.
share draft account
Securities and Exchange Commission
3. The process of dealing with the chance of a potential personal or financial loss.
risk management
market risk
well-known financial newspapers
financial pages
4. The belief - qualities - or standards that you consider important or desirable.
values
well-know financial magazines
checking account
well-known investor services
5. 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.
annuities
mutual funds
Rule of 72
mutual fund
6. Wall Street Journal and Barron's
bankruptcy
debit card
inflation
well-known financial newspapers
7. Losses in an investment as a result of the business cycle
deductible
budget
market risk
compounding interest rate
8. US treasury security that matures in 30 years
deductible
US Treasury Bonds
full-service broker
Temporary investment
9. Investment choices that will be held for long periods
well-known investor services
investing risk
financial pages
permanent investment
10. Management of investment alternatives to maximize the growth of your portfolio
ATM - Automatic Teller Machine
US Treasury Bonds
rate of return
strategic investing
11. The maximum amount an insurance company will pay if you file a claim.
options
coverage limit
dollar cost average
deductible
12. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
market risk
deductible
APR - Average Percentage Rate
non-market risk
13. Debt obligations of corporations
stock market
dividend
corporate bonds
Securities and Exchange Commission
14. Coins & art & memorabilia or other items that are popular from time to time
budget
collectibles
company risk
career
15. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
time value of money
Series EE Savings Bond
real estate
spyware
16. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
debit card
dividend
variable expenses
17. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
interest-rate risk
collectibles
company risk
18. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
well-know full-service brokers
social security tax
phishing
19. Spreading risk among many types of investments; one way to minimize risk
permanent investment
principal
credit report
diversification
20. Standard and Poor's and Moody's
well-known investor services
well-know full-service brokers
diversification
interest-rate risk
21. The place where stocks are bought and sold.
satellite decisions
stock market
time value of money
principal
22. Bold and high-risk investments
spending plan
credit history
speculative investments
well-know full-service brokers
23. A technique used for estimating the number of years required to double your money at a given rate
Rule of 72
US Treasury Bills
dollar cost average
municipal bonds
24. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
chapter 13
coverage limit
over-the-limit fee
time value of money
25. Uncontrollable and unpredictable events that cause an investment to lose value
state income tax
credit
over-the-limit fee
non-market risk
26. Conservative investing; used when you have 'excess' savings
Rule of 72
opportunity cost
systematic investing
initial investing
27. Investment choices that will be re-evaluated within a year or less
Temporary investment
satellite decisions
Securities and Exchange Commission
short term goal
28. Another term for budget
spending plan
annual fee
over-the-limit fee
annuities
29. The willingness to give up something you want now in return for something better in the future.
financial advisers
APR - Average Percentage Rate
delayed gratification
interest-rate risk
30. The entire amount of money you owe to lenders
debt
time value of money
wants
yield
31. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
capital loss
budget
ATM - Automatic Teller Machine
32. Business Weekly & Forbes & Money
short term goal
deductible
satellite decisions
well-know financial magazines
33. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
options
phishing
APR - Average Percentage Rate
municipal bonds
34. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
stock
deductible
strategic investing
capital gain
35. The probability that injury - damage - or loss will occur.
risk
variable expenses
spending plan
credit
36. Management of investment alternatives to maximize the growth of your portfolio
compounding interest rate
phishing
strategic investing
chapter 13
37. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
delayed gratification
deductible
annual report
full-service broker
38. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
savings account
cash flow
pay yourself first - P.Y.F.
credit union
39. Low-priced stocks of small companies that have no track record
well-know financial magazines
share account
portfolio
penny stocks
40. Reducing investment risk by putting money in several different types of investments.
satellite decisions
financial pages
diversification
social security tax
41. A chosen pursuit - profession - or occupation
pay yourself first - P.Y.F.
career
initial investing
inflation
42. Summary of a corporation's financial condition
discount brokers
wants
principal
annual report
43. A bank account against which the depositor can draw checks payable on demand.
spyware
time value of money
credit
checking account
44. 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.
political risk
interest-rate risk
universal default
financial pages
45. A spending plan for managing money during a given period of time.
time value of money
budget
real estate
well-know full-service brokers
46. A general and progressive increase in prices
stock market
inflation
risk management
grace period
47. Earning interest on interest.
yield
interest
pay yourself first - P.Y.F.
compounding interest rate
48. Reducing investment risk by putting money in several different types of investments.
credit limit
credit limit
diversification
spending plan
49. The use of long-term savings to earn a financial return
full-service broker
chapter 7
Investing
diversification
50. A spending plan for managing money during a given period of time.
capital gain
budget
ATM - Automatic Teller Machine
wants