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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. Standard and Poor's and Moody's
chapter 7
well-known investor services
opportunity cost
well-known discount brokers
2. 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.
risk averse
APR - Average Percentage Rate
spyware
inflation
3. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
time value of money
credit score
phishing
non-market risk
4. The value of What is given up when you choose one option over another.
wants
APR - Average Percentage Rate
opportunity cost
pay yourself first - P.Y.F.
5. Debt obligations of state or local governments
municipal bonds
US Treasury Bonds
Rule of 72
well-known financial newspapers
6. Bonds designed for investors wanting to protect again inflation losses
Series EE Savings Bond
annual fee
savings account
Series I Savings Bond
7. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
systematic investing
origination fee
ATM - Automatic Teller Machine
values
8. Summary of a corporation's financial condition
opportunity cost
discount brokers
chapter 13
annual report
9. The portion of the profits paid to the shareholders of a company.
interest-rate risk
Rule of 72
principal
dividend
10. Collection of investments
annual report
credit report
portfolio
share draft account
11. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
portfolio
interest-rate risk
ATM - Automatic Teller Machine
bond
12. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
capital gain
put-and-take account
municipal bonds
Investing
13. 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.
dividend
diversification
spyware
deductible
14. The amount of money someone is willing to loan you.
risk
interest-rate risk
principal
stocks
15. Another term for budget
spending plan
tax deferred
yield
ATM - Automatic Teller Machine
16. Companies that provide extensive financial data to clients
Series EE Savings Bond
industry risk
credit history
investor services
17. Associated with owning stock of only one company
mutual fund
well-known financial newspapers
company risk
permanent investment
18. The setting aside of money for future use or other investments
diversification
Rule of 72
phishing
pay yourself first - P.Y.F.
19. Coins & art & memorabilia or other items that are popular from time to time
collectibles
savings
state income tax
savings account
20. A technique used for estimating the number of years required to double your money at a given rate
dollar cost average
rate of return
Rule of 72
US Treasury Bills
21. Earning interest on interest.
corporate bonds
compounding interest rate
inflation
company risk
22. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
permanent investment
phishing
credit report
stock
23. Amount of money that is set aside for future purchases
options
principal
savings
universal default
24. A detailed record of your personal credit and financial transactions.
grace period
over-the-limit fee
credit report
US Treasury Bills
25. The place where stocks are bought and sold.
bankruptcy
interest-rate risk
stock market
company risk
26. Management of investment alternatives to maximize the growth of your portfolio
industry risk
strategic investing
bank
well-know full-service brokers
27. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
values
grace period
well-know financial magazines
28. A legal process to get out of debt when you can no longer make all your required payments.
debt
chapter 7
bankruptcy
diversification
29. 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.
well-known investor services
company risk
APR - Average Percentage Rate
rate of return
30. A general and progressive increase in prices
inflation
well-know financial magazines
put-and-take account
spyware
31. A formal contract to repay borrowed money with interest at fixed intervals
capital loss
collectibles
yield
bond
32. Reducing investment risk by putting money in several different types of investments.
satellite decisions
well-know full-service brokers
options
diversification
33. The portion of the profits paid to the shareholders of a company.
dividend
risk taker
opportunity cost
pay yourself first - P.Y.F.
34. The entire amount of money you owe to lenders
debt
spending plan
diversification
principal
35. 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.
risk management
credit union
universal default
phishing
36. The unique passcode number you use to get access to your savings and/or checking account
savings account
delayed gratification
Personal Identification Number - PIN
wants
37. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
bond
bankruptcy
put-and-take account
debit card
38. US treasury security that matures from a few days to one year
interest
US Treasury Bills
share account
US Treasury Notes
39. Movement of money you receive and the money you spend
US Treasury Bonds
time value of money
cash flow
Temporary investment
40. The amount a corporation borrowed in a bond situation
initial investing
principal
market risk
put-and-take account
41. A payroll deduction collected by employers by law and sent to the state government to support state services.
non-market risk
credit limit
bond
state income tax
42. Fee on credit card for making charges above your credit limit.
stock
coverage limit
variable expenses
over-the-limit fee
43. A bank account against which the depositor can draw checks payable on demand.
phishing
spyware
checking account
mutual fund
44. Spreading risk among many types of investments; one way to minimize risk
diversification
annual fee
well-known investor services
debit card
45. Reducing investment risk by putting money in several different types of investments.
risk taker
diversification
capital loss
social security tax
46. Investment choices that will be held for long periods
discount brokers
maturity date
futures
permanent investment
47. A term that describes investments on which earnings are not taxed until retirement
corporate bonds
permanent investment
tax deferred
savings account
48. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
Securities and Exchange Commission
bank
share draft account
cash flow
49. The credit union term for a checking account.
diversification
share draft account
diversification
strategic investing
50. The profit from an investment.
compounding interest rate
yield
wants
capital loss