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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. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
Series EE Savings Bond
corporate bonds
principal
2. Pooling of money from many investors to buy a large & diverse selection of securities
over-the-limit fee
career
mutual funds
dividend
3. Brokers who provided little or no information to clients
budget
discount brokers
spyware
collectibles
4. Investors who take to take chances
risk taker
capital gain
grace period
market risk
5. Losses in an investment as a result of the business cycle
futures
non-market risk
market risk
rate of return
6. A formal contract to repay borrowed money with interest at fixed intervals
savings account
bond
Rule of 72
phishing
7. The amount a corporation borrowed in a bond situation
principal
delayed gratification
interest-rate risk
wants
8. 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
investor services
US Treasury Notes
spyware
9. A goal to be achieved within the next three months.
options
credit report
company risk
short term goal
10. Bold and high-risk investments
state income tax
put-and-take account
Rule of 72
speculative investments
11. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
industry risk
Securities and Exchange Commission
speculative investments
credit score
12. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
investing risk
deductible
municipal bonds
13. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
social security tax
dollar cost average
budget
APR - Average Percentage Rate
14. US treasury security that matures in 2 & 5 & or 10 years
mutual funds
risk taker
dollar cost average
US Treasury Notes
15. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
compounding interest rate
chapter 7
investing risk
16. The probability that injury - damage - or loss will occur.
systematic investing
risk
penny stocks
Investing
17. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
variable expenses
opportunity cost
Series EE Savings Bond
18. A summary of a person's borrowing and repayment history.
deductible
credit history
investor services
state income tax
19. A form of bankruptcy that allows you to erase most of your debt.
stock market
share draft account
career
chapter 7
20. Debt obligations of state or local governments
municipal bonds
stocks
credit limit
short term goal
21. Bold and high-risk investments
risk averse
dividend
real estate
speculative investments
22. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
put-and-take account
bankruptcy
financial pages
23. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
speculative investments
share draft account
chapter 7
24. Pooling of money from many investors to buy a large & diverse selection of securities
universal default
debit card
principal
mutual funds
25. A government sector that requires all public corporations to make annual reports available to their stockholders
share draft account
penny stocks
Securities and Exchange Commission
mutual funds
26. US treasury security that matures from a few days to one year
put-and-take account
municipal bonds
US Treasury Bills
savings account
27. The credit union term for a checking account.
savings
rate of return
debit card
share draft account
28. Property consisting of houses and land
credit limit
real estate
annual fee
Series I Savings Bond
29. Movement of money you receive and the money you spend
real estate
chapter 7
mutual fund
cash flow
30. Fee on credit card for making charges above your credit limit.
full-service broker
over-the-limit fee
initial investing
interest
31. Maximum amount of credit a lender will extend to a customer.
bond
company risk
credit limit
stocks
32. Charles Schwab & TD Ameritrade & E*TRADE
real estate
well-known discount brokers
municipal bonds
discount brokers
33. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
credit history
collectibles
inflation
34. 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.
tax deferred
short term goal
APR - Average Percentage Rate
systematic investing
35. The maximum amount an insurance company will pay if you file a claim.
municipal bonds
credit history
coverage limit
Rule of 72
36. Conservative investing; used when you have 'excess' savings
interest
satellite decisions
annual fee
initial investing
37. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
periodic or occasional expenses
options
strategic investing
Series I Savings Bond
38. Amount of money that is set aside for future purchases
credit report
real estate
origination fee
savings
39. 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
well-known financial newspapers
state income tax
share draft account
40. The portion of the profits paid to the shareholders of a company.
dividend
APR - Average Percentage Rate
compounding interest rate
ATM - Automatic Teller Machine
41. The amount a corporation pays at a fixed amount when repaying a bond
savings account
spending plan
full-service broker
interest
42. Wall Street Journal and Barron's
corporate bonds
budget
well-known financial newspapers
over-the-limit fee
43. Regular and planned investments
systematic investing
savings account
penny stocks
annual report
44. Associated with owning stock of similar groups of businesses
industry risk
mutual funds
bond
US Treasury Notes
45. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
debit card
corporate bonds
bankruptcy
46. A form of bankruptcy that allows you to erase most of your debt.
Securities and Exchange Commission
universal default
interest
chapter 7
47. The amount of money someone is willing to loan you.
company risk
principal
company risk
savings account
48. Investors who take to take chances
strategic investing
values
risk taker
well-know full-service brokers
49. Property consisting of houses and land
real estate
inflation
risk averse
annuities
50. Standard and Poor's and Moody's
share draft account
diversification
well-known investor services
mutual funds