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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. Debt obligations of state or local governments
capital loss
municipal bonds
coverage limit
credit union
2. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
social security tax
cash flow
chapter 7
chapter 13
3. The chance that inflation will rise faster than the rate of return on an investment
credit
risk averse
risk management
interest-rate risk
4. The belief - qualities - or standards that you consider important or desirable.
interest
speculative investments
origination fee
values
5. The setting aside of money for future use or other investments
annual fee
pay yourself first - P.Y.F.
yield
full-service broker
6. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
credit report
APR - Average Percentage Rate
company risk
7. A summary of a person's borrowing and repayment history.
options
well-known investor services
credit history
well-known discount brokers
8. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
corporate bonds
grace period
interest-rate risk
chapter 13
9. Fee on credit card for making charges above your credit limit.
coverage limit
share draft account
deductible
over-the-limit fee
10. Coins & art & memorabilia or other items that are popular from time to time
dividend
collectibles
short term goal
checking account
11. People trained to give investment advise based on your goals & age & lifestyle & etc
US Treasury Notes
financial advisers
financial pages
credit report
12. Expenses that aren't paid every month and can be either fixed or variable.
risk taker
periodic or occasional expenses
portfolio
initial investing
13. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
dollar cost average
bankruptcy
inflation
14. The profit from an investment.
yield
speculative investments
initial investing
stock market
15. 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.
credit report
investor services
social security tax
deductible
16. A general and progressive increase in prices
chapter 13
inflation
full-service broker
market risk
17. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
speculative investments
capital gain
US Treasury Bills
risk
18. Regular and planned investments
credit score
interest
non-market risk
systematic investing
19. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
debit card
variable expenses
credit
20. The place where stocks are bought and sold.
tax deferred
investor services
Rule of 72
stock market
21. The increase or decrease in the original purchase price of an investment over a period of time.
over-the-limit fee
rate of return
chapter 13
compounding interest rate
22. The portion of the profits paid to the shareholders of a company.
spending plan
annual report
dividend
coverage limit
23. 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.
savings account
rate of return
credit union
coverage limit
24. Debt obligations of state or local governments
investing risk
credit union
annual report
municipal bonds
25. Investment choices that will be held for long periods
maturity date
Rule of 72
permanent investment
time value of money
26. Maximum amount of credit a lender will extend to a customer.
annual report
share account
credit limit
principal
27. Collection of investments
portfolio
short term goal
municipal bonds
financial advisers
28. Associated with owning stock of only one company
chapter 13
budget
coverage limit
company risk
29. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
deductible
Investing
time value of money
opportunity cost
30. A payroll deduction collected by employers by law and sent to the state government to support state services.
credit report
state income tax
budget
spending plan
31. 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.
non-market risk
over-the-limit fee
universal default
well-known discount brokers
32. Movement of money you receive and the money you spend
annuities
penny stocks
bankruptcy
cash flow
33. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
options
tax deferred
credit limit
capital gain
34. Low-priced stocks of small companies that have no track record
penny stocks
phishing
stock market
values
35. Investors who take to take chances
well-know full-service brokers
risk taker
bond
checking account
36. Bonds designed for investors wanting to protect again inflation losses
credit
options
Series I Savings Bond
interest
37. Losses in an investment as a result of the business cycle
market risk
financial pages
wants
principal
38. Low-priced stocks of small companies that have no track record
penny stocks
strategic investing
Securities and Exchange Commission
well-known financial newspapers
39. A general and progressive increase in prices
compounding interest rate
time value of money
inflation
credit
40. Reducing investment risk by putting money in several different types of investments.
Temporary investment
principal
diversification
industry risk
41. Earning interest on interest.
compounding interest rate
share account
mutual fund
Series I Savings Bond
42. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
well-known financial newspapers
portfolio
time value of money
43. The credit union term for a savings account.
APR - Average Percentage Rate
share draft account
share account
financial pages
44. Amount of money that is set aside for future purchases
options
capital gain
dividend
savings
45. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
short term goal
ATM - Automatic Teller Machine
annuities
pay yourself first - P.Y.F.
46. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
risk
debit card
chapter 7
47. Another term for budget
well-know full-service brokers
risk management
spending plan
wants
48. A legal process to get out of debt when you can no longer make all your required payments.
portfolio
industry risk
bankruptcy
cash flow
49. Newspapers list of securities
delayed gratification
financial pages
put-and-take account
speculative investments
50. The probability that injury - damage - or loss will occur.
risk
capital gain
well-known discount brokers
APR - Average Percentage Rate