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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 bank account against which the depositor can draw checks payable on demand.
checking account
compounding interest rate
well-know financial magazines
social security tax
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.
opportunity cost
chapter 13
bankruptcy
capital gain
3. An amount that credit card companies can charge for the use of a credit card.
diversification
annual fee
futures
stock
4. Smaller decisions that can result from a major decision.
mutual fund
spending plan
satellite decisions
Rule of 72
5. Investors who are afraid to make investments
Rule of 72
Personal Identification Number - PIN
risk averse
capital loss
6. A payroll deduction collected by employers by law and sent to the state government to support state services.
spyware
state income tax
stock
bankruptcy
7. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
investor services
deductible
periodic or occasional expenses
US Treasury Bills
8. Investors who are afraid to make investments
financial pages
risk averse
tax deferred
systematic investing
9. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
put-and-take account
municipal bonds
well-known investor services
maturity date
10. Conservative investing; used when you have 'excess' savings
initial investing
ATM - Automatic Teller Machine
risk taker
annuities
11. A bank account against which the depositor can draw checks payable on demand.
non-market risk
initial investing
checking account
options
12. A general and progressive increase in prices
delayed gratification
inflation
well-know full-service brokers
wants
13. A general and progressive increase in prices
mutual funds
inflation
well-know full-service brokers
principal
14. Losses in an investment as a result of the business cycle
well-known discount brokers
non-market risk
dividend
market risk
15. A chosen pursuit - profession - or occupation
career
risk taker
Rule of 72
credit report
16. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
speculative investments
principal
bank
well-know financial magazines
17. The chance that an investment's value will decrease
checking account
investing risk
company risk
risk
18. Bold and high-risk investments
speculative investments
tax deferred
market risk
phishing
19. A formal contract to repay borrowed money with interest at fixed intervals
bond
portfolio
Personal Identification Number - PIN
Series EE Savings Bond
20. A detailed record of your personal credit and financial transactions.
credit report
Securities and Exchange Commission
corporate bonds
bank
21. The increase or decrease in the original purchase price of an investment over a period of time.
rate of return
financial advisers
inflation
dollar cost average
22. A government sector that requires all public corporations to make annual reports available to their stockholders
credit score
Securities and Exchange Commission
discount brokers
risk taker
23. 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.
chapter 13
checking account
Rule of 72
put-and-take account
24. Smaller decisions that can result from a major decision.
satellite decisions
checking account
ATM - Automatic Teller Machine
coverage limit
25. US treasury security that matures in 2 & 5 & or 10 years
US Treasury Notes
diversification
penny stocks
bond
26. The probability that injury - damage - or loss will occur.
risk
systematic investing
futures
bankruptcy
27. Maximum amount of credit a lender will extend to a customer.
credit limit
time value of money
short term goal
strategic investing
28. Newspapers list of securities
dollar cost average
corporate bonds
financial pages
corporate bonds
29. Another term for budget
over-the-limit fee
Rule of 72
deductible
spending plan
30. A goal to be achieved within the next three months.
short term goal
well-know full-service brokers
credit union
stock
31. The entire amount of money you owe to lenders
credit report
bond
debt
non-market risk
32. A form of bankruptcy that allows you to erase most of your debt.
diversification
speculative investments
annual report
chapter 7
33. Regular and planned investments
systematic investing
credit union
share account
dividend
34. A certificate documenting the shareholder's ownership in the corporation
stock
budget
grace period
investing risk
35. Property consisting of houses and land
investing risk
state income tax
real estate
tax deferred
36. The credit union term for a savings account.
wants
well-known discount brokers
rate of return
share account
37. Merrill Lynch & Fidelity Investments & American Express
non-market risk
well-know full-service brokers
penny stocks
principal
38. Debt obligations of state or local governments
Series I Savings Bond
municipal bonds
credit limit
periodic or occasional expenses
39. Spreading risk among many types of investments; one way to minimize risk
rate of return
diversification
risk averse
debt
40. US treasury security that matures from a few days to one year
rate of return
US Treasury Notes
US Treasury Bills
non-market risk
41. The unique passcode number you use to get access to your savings and/or checking account
strategic investing
credit score
annual report
Personal Identification Number - PIN
42. The setting aside of money for future use or other investments
inflation
company risk
pay yourself first - P.Y.F.
credit history
43. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
social security tax
Series EE Savings Bond
chapter 13
real estate
44. The process of dealing with the chance of a potential personal or financial loss.
Investing
chapter 7
non-market risk
risk management
45. Business Weekly & Forbes & Money
wants
put-and-take account
periodic or occasional expenses
well-know financial magazines
46. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
values
financial pages
investing risk
47. 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.
stock
Rule of 72
Securities and Exchange Commission
investor services
48. A spending plan for managing money during a given period of time.
origination fee
budget
permanent investment
credit history
49. Actions that the government might take that would reduce the value of an investment
compounding interest rate
political risk
short term goal
well-know full-service brokers
50. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'
yield
permanent investment
inflation
debit card