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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 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.
interest-rate risk
Rule of 72
tax deferred
universal default
2. The belief - qualities - or standards that you consider important or desirable.
full-service broker
cash flow
spending plan
values
3. Investment choices that will be re-evaluated within a year or less
Temporary investment
compounding interest rate
short term goal
annuities
4. Debt obligations of state or local governments
capital loss
municipal bonds
chapter 7
chapter 7
5. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
penny stocks
chapter 7
risk
6. A term that describes investments on which earnings are not taxed until retirement
debt
bond
tax deferred
well-know financial magazines
7. A technique used for estimating the number of years required to double your money at a given rate
debit card
Series EE Savings Bond
Rule of 72
mutual funds
8. Movement of money you receive and the money you spend
annual fee
cash flow
Personal Identification Number - PIN
well-known discount brokers
9. Fee on credit card for making charges above your credit limit.
financial pages
mutual fund
over-the-limit fee
collectibles
10. Investment choices that will be held for long periods
Investing
penny stocks
options
permanent investment
11. Pooling of money from many investors to buy a large & diverse selection of securities
interest
mutual funds
non-market risk
diversification
12. Investing with a series of regular payments; usually associated with life insurance companies
spending plan
annuities
share account
US Treasury Bills
13. Collection of investments
APR - Average Percentage Rate
credit union
spending plan
portfolio
14. The portion of the profits paid to the shareholders of a company.
Personal Identification Number - PIN
dollar cost average
Series I Savings Bond
dividend
15. Movement of money you receive and the money you spend
cash flow
delayed gratification
non-market risk
diversification
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.
spyware
diversification
US Treasury Bills
debt
17. Losses in an investment as a result of the business cycle
debit card
Securities and Exchange Commission
market risk
APR - Average Percentage Rate
18. The chance that an investment's value will decrease
Rule of 72
investing risk
spyware
Securities and Exchange Commission
19. A legal process to get out of debt when you can no longer make all your required payments.
investor services
bankruptcy
futures
US Treasury Notes
20. People trained to give investment advise based on your goals & age & lifestyle & etc
strategic investing
financial advisers
wants
budget
21. A payroll deduction collected by employers by law and sent to the state government to support state services.
bond
discount brokers
state income tax
investor services
22. Associated with owning stock of similar groups of businesses
universal default
periodic or occasional expenses
pay yourself first - P.Y.F.
industry risk
23. Debt obligations of corporations
wants
capital loss
well-known investor services
corporate bonds
24. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
opportunity cost
well-known discount brokers
US Treasury Bills
25. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
risk averse
savings
Series EE Savings Bond
put-and-take account
26. Expenses that are not fixed.
Investing
variable expenses
credit report
collectibles
27. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
systematic investing
dollar cost average
risk taker
Personal Identification Number - PIN
28. Summary of a corporation's financial condition
annual report
share draft account
time value of money
savings
29. Expenses that are not fixed.
yield
credit limit
variable expenses
strategic investing
30. Merrill Lynch & Fidelity Investments & American Express
financial pages
state income tax
well-know full-service brokers
credit
31. The place where stocks are bought and sold.
stock market
share draft account
debt
deductible
32. Charles Schwab & TD Ameritrade & E*TRADE
investing risk
interest-rate risk
well-known discount brokers
real estate
33. Earning interest on interest.
compounding interest rate
universal default
risk taker
budget
34. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
annual report
time value of money
options
financial advisers
35. Contacts to buy and sell commodities or stocks for a specific price on a specific date
share draft account
futures
principal
annual fee
36. The willingness to give up something you want now in return for something better in the future.
phishing
delayed gratification
deductible
deductible
37. A certificate documenting the shareholder's ownership in the corporation
credit score
stock
permanent investment
over-the-limit fee
38. A chosen pursuit - profession - or occupation
municipal bonds
full-service broker
career
municipal bonds
39. 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.
annuities
diversification
initial investing
universal default
40. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
mutual funds
well-know financial magazines
share account
41. Newspapers list of securities
mutual fund
corporate bonds
financial pages
career
42. An amount that credit card companies can charge for the use of a credit card.
real estate
municipal bonds
annual fee
industry risk
43. Business Weekly & Forbes & Money
credit score
well-know financial magazines
cash flow
mutual funds
44. 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.
social security tax
Rule of 72
stock
dividend
45. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
inflation
periodic or occasional expenses
ATM - Automatic Teller Machine
principal
46. The increase or decrease in the original purchase price of an investment over a period of time.
rate of return
municipal bonds
principal
variable expenses
47. US treasury security that matures from a few days to one year
mutual fund
US Treasury Bills
put-and-take account
collectibles
48. Smaller decisions that can result from a major decision.
Series EE Savings Bond
satellite decisions
periodic or occasional expenses
principal
49. A formal contract to repay borrowed money with interest at fixed intervals
coverage limit
bond
short term goal
mutual fund
50. Merrill Lynch & Fidelity Investments & American Express
principal
debt
values
well-know full-service brokers