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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. Associated with owning stock of similar groups of businesses
investing risk
Series I Savings Bond
over-the-limit fee
industry risk
2. A form of bankruptcy that allows you to erase most of your debt.
well-known discount brokers
savings
capital loss
chapter 7
3. 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.
mutual fund
checking account
stock market
company risk
4. Expenses that are not fixed.
variable expenses
checking account
interest-rate risk
well-know full-service brokers
5. Coins & art & memorabilia or other items that are popular from time to time
short term goal
tax deferred
rate of return
collectibles
6. The portion of the profits paid to the shareholders of a company.
interest-rate risk
spending plan
dividend
market risk
7. Investors who take to take chances
interest
options
risk taker
chapter 7
8. Losses in an investment as a result of the business cycle
discount brokers
debt
pay yourself first - P.Y.F.
market risk
9. US treasury security that matures in 30 years
credit
penny stocks
well-known financial newspapers
US Treasury Bonds
10. Property consisting of houses and land
origination fee
capital loss
real estate
well-known investor services
11. Summary of a corporation's financial condition
Rule of 72
annual report
time value of money
opportunity cost
12. Bold and high-risk investments
stocks
speculative investments
delayed gratification
Temporary investment
13. A technique used for estimating the number of years required to double your money at a given rate
debt
Rule of 72
share account
savings account
14. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
delayed gratification
pay yourself first - P.Y.F.
US Treasury Notes
credit union
15. A bank account against which the depositor can draw checks payable on demand.
non-market risk
checking account
risk management
annuities
16. 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.
financial pages
yield
spyware
dollar cost average
17. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
futures
capital gain
phishing
risk averse
18. Brokers who provided little or no information to clients
checking account
discount brokers
dividend
career
19. The willingness to give up something you want now in return for something better in the future.
delayed gratification
Rule of 72
values
discount brokers
20. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
US Treasury Bonds
annual fee
debt
origination fee
21. Another term for budget
risk
principal
spending plan
social security tax
22. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
chapter 7
US Treasury Bonds
chapter 13
annuities
23. The place where stocks are bought and sold.
ATM - Automatic Teller Machine
stock market
investing risk
tax deferred
24. Amount of money that is set aside for future purchases
capital loss
satellite decisions
Series I Savings Bond
savings
25. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
dollar cost average
market risk
credit
annual report
26. Earning interest on interest.
chapter 7
compounding interest rate
investing risk
pay yourself first - P.Y.F.
27. Actions that the government might take that would reduce the value of an investment
compounding interest rate
penny stocks
US Treasury Bonds
political risk
28. Actions that the government might take that would reduce the value of an investment
share draft account
political risk
short term goal
ATM - Automatic Teller Machine
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.
values
dollar cost average
diversification
deductible
30. Investment choices that will be held for long periods
dollar cost average
debt
investing risk
permanent investment
31. Another term for budget
rate of return
spending plan
principal
stock market
32. Investing with a series of regular payments; usually associated with life insurance companies
annuities
tax deferred
investor services
Securities and Exchange Commission
33. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
capital loss
universal default
interest-rate risk
bank
34. The belief - qualities - or standards that you consider important or desirable.
risk
values
financial advisers
state income tax
35. Summary of a corporation's financial condition
annual report
US Treasury Bills
savings account
maturity date
36. Bonds designed for investors wanting to protect again inflation losses
wants
bankruptcy
Series I Savings Bond
strategic investing
37. A unit of ownership in a corporation
investor services
stocks
corporate bonds
financial pages
38. The process of dealing with the chance of a potential personal or financial loss.
Personal Identification Number - PIN
risk management
well-know full-service brokers
risk averse
39. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
debt
company risk
variable expenses
40. Debt obligations of state or local governments
budget
options
permanent investment
municipal bonds
41. A government sector that requires all public corporations to make annual reports available to their stockholders
financial advisers
social security tax
Securities and Exchange Commission
diversification
42. 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
Investing
Rule of 72
market risk
43. A certificate documenting the shareholder's ownership in the corporation
stock
US Treasury Bills
satellite decisions
permanent investment
44. Collection of investments
portfolio
debt
corporate bonds
credit limit
45. Maximum amount of credit a lender will extend to a customer.
principal
periodic or occasional expenses
non-market risk
credit limit
46. US treasury security that matures from a few days to one year
annuities
US Treasury Bills
credit union
well-known investor services
47. Spreading risk among many types of investments; one way to minimize risk
credit
diversification
industry risk
Series I Savings Bond
48. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
universal default
compounding interest rate
annuities
49. Management of investment alternatives to maximize the growth of your portfolio
municipal bonds
financial pages
state income tax
strategic investing
50. An amount that credit card companies can charge for the use of a credit card.
over-the-limit fee
cash flow
interest
annual fee