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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 amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
social security tax
deductible
values
Series I Savings Bond
2. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
checking account
US Treasury Notes
well-known investor services
3. Conservative investing; used when you have 'excess' savings
initial investing
periodic or occasional expenses
industry risk
debt
4. The amount of money someone is willing to loan you.
checking account
principal
rate of return
market risk
5. The maximum amount an insurance company will pay if you file a claim.
ATM - Automatic Teller Machine
diversification
values
coverage limit
6. A general and progressive increase in prices
principal
dividend
inflation
risk taker
7. The amount a corporation borrowed in a bond situation
compounding interest rate
principal
stocks
risk management
8. Brokers who provided little or no information to clients
bond
options
well-know full-service brokers
discount brokers
9. The process of dealing with the chance of a potential personal or financial loss.
risk taker
opportunity cost
bond
risk management
10. Contacts to buy and sell commodities or stocks for a specific price on a specific date
share account
US Treasury Notes
futures
permanent investment
11. Companies that provide extensive financial data to clients
wants
investor services
risk management
coverage limit
12. The willingness to give up something you want now in return for something better in the future.
capital gain
phishing
delayed gratification
periodic or occasional expenses
13. Smaller decisions that can result from a major decision.
stock market
satellite decisions
spending plan
credit limit
14. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
grace period
state income tax
tax deferred
15. The profit from an investment.
corporate bonds
yield
budget
annual fee
16. The setting aside of money for future use or other investments
risk averse
political risk
debt
pay yourself first - P.Y.F.
17. Associated with owning stock of similar groups of businesses
principal
industry risk
periodic or occasional expenses
annuities
18. A payroll deduction collected by employers by law and sent to the state government to support state services.
opportunity cost
state income tax
universal default
discount brokers
19. Low-priced stocks of small companies that have no track record
wants
financial pages
penny stocks
full-service broker
20. The process of dealing with the chance of a potential personal or financial loss.
risk taker
Rule of 72
credit limit
risk management
21. Fee on credit card for making charges above your credit limit.
industry risk
over-the-limit fee
risk management
well-know full-service brokers
22. Expenses that aren't paid every month and can be either fixed or variable.
principal
dollar cost average
annuities
periodic or occasional expenses
23. The belief - qualities - or standards that you consider important or desirable.
values
annual report
bank
ATM - Automatic Teller Machine
24. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
interest
risk
Series EE Savings Bond
political risk
25. An amount that credit card companies can charge for the use of a credit card.
US Treasury Bonds
annual fee
well-known financial newspapers
permanent investment
26. Bold and high-risk investments
spyware
systematic investing
systematic investing
speculative investments
27. The unique passcode number you use to get access to your savings and/or checking account
well-know full-service brokers
savings account
Personal Identification Number - PIN
collectibles
28. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
dividend
well-know financial magazines
options
stocks
29. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
non-market risk
origination fee
company risk
delayed gratification
30. A spending plan for managing money during a given period of time.
mutual fund
interest
municipal bonds
budget
31. Charles Schwab & TD Ameritrade & E*TRADE
ATM - Automatic Teller Machine
well-known discount brokers
social security tax
state income tax
32. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
debit card
credit
pay yourself first - P.Y.F.
dollar cost average
33. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
savings account
investor services
values
34. US treasury security that matures in 30 years
interest-rate risk
options
periodic or occasional expenses
US Treasury Bonds
35. A formal contract to repay borrowed money with interest at fixed intervals
annual report
cash flow
credit union
bond
36. Expenses that aren't paid every month and can be either fixed or variable.
credit report
investing risk
well-know full-service brokers
periodic or occasional expenses
37. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
mutual funds
well-known investor services
risk management
capital gain
38. Debt obligations of corporations
corporate bonds
credit
credit limit
strategic investing
39. Investment choices that will be held for long periods
pay yourself first - P.Y.F.
permanent investment
ATM - Automatic Teller Machine
periodic or occasional expenses
40. Actions that the government might take that would reduce the value of an investment
Securities and Exchange Commission
political risk
company risk
financial pages
41. A term that describes investments on which earnings are not taxed until retirement
tax deferred
portfolio
bankruptcy
credit history
42. A detailed record of your personal credit and financial transactions.
collectibles
credit report
risk averse
well-know full-service brokers
43. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
bond
grace period
credit score
phishing
44. A formal contract to repay borrowed money with interest at fixed intervals
credit score
time value of money
tax deferred
bond
45. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
US Treasury Bills
put-and-take account
deductible
principal
46. Investors who take to take chances
credit report
risk taker
initial investing
annual fee
47. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
maturity date
social security tax
delayed gratification
48. The unique passcode number you use to get access to your savings and/or checking account
permanent investment
diversification
Personal Identification Number - PIN
values
49. Wall Street Journal and Barron's
real estate
well-known financial newspapers
share draft account
principal
50. The amount a corporation pays at a fixed amount when repaying a bond
credit history
interest
mutual funds
grace period