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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. 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
industry risk
Personal Identification Number - PIN
checking account
2. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
investing risk
time value of money
Rule of 72
dollar cost average
3. An amount that credit card companies can charge for the use of a credit card.
yield
diversification
annual fee
options
4. A technique used for estimating the number of years required to double your money at a given rate
compounding interest rate
systematic investing
pay yourself first - P.Y.F.
Rule of 72
5. Management of investment alternatives to maximize the growth of your portfolio
bank
cash flow
strategic investing
Investing
6. A general and progressive increase in prices
risk taker
annual report
opportunity cost
inflation
7. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.
risk management
bankruptcy
Personal Identification Number - PIN
social security tax
8. Newspapers list of securities
values
opportunity cost
bond
financial pages
9. The use of long-term savings to earn a financial return
debit card
values
Investing
speculative investments
10. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
share account
principal
checking account
time value of money
11. Charles Schwab & TD Ameritrade & E*TRADE
municipal bonds
well-know financial magazines
well-known discount brokers
risk taker
12. Debt obligations of corporations
social security tax
over-the-limit fee
annuities
corporate bonds
13. The portion of the profits paid to the shareholders of a company.
dividend
satellite decisions
variable expenses
bond
14. 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
debt
bond
investor services
15. The credit union term for a savings account.
strategic investing
share account
full-service broker
Rule of 72
16. An amount that credit card companies can charge for the use of a credit card.
share account
budget
annual fee
variable expenses
17. The setting aside of money for future use or other investments
credit union
rate of return
pay yourself first - P.Y.F.
futures
18. Coins & art & memorabilia or other items that are popular from time to time
Investing
bank
collectibles
well-known discount brokers
19. A legal process to get out of debt when you can no longer make all your required payments.
credit score
share account
speculative investments
bankruptcy
20. Newspapers list of securities
career
financial pages
investor services
time value of money
21. Investment choices that will be re-evaluated within a year or less
risk
periodic or occasional expenses
Temporary investment
industry risk
22. Actions that the government might take that would reduce the value of an investment
capital gain
real estate
political risk
stock
23. Standard and Poor's and Moody's
mutual fund
well-known investor services
bankruptcy
debit card
24. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
stocks
well-know full-service brokers
real estate
25. The value of What is given up when you choose one option over another.
Personal Identification Number - PIN
spending plan
opportunity cost
municipal bonds
26. 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.
Rule of 72
industry risk
debit card
over-the-limit fee
27. A detailed record of your personal credit and financial transactions.
credit report
non-market risk
inflation
put-and-take account
28. A formal contract to repay borrowed money with interest at fixed intervals
social security tax
over-the-limit fee
bond
annual fee
29. Investors who take to take chances
credit report
bond
put-and-take account
risk taker
30. The value of What is given up when you choose one option over another.
mutual funds
Rule of 72
futures
opportunity cost
31. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
US Treasury Notes
annual report
credit
state income tax
32. A goal to be achieved within the next three months.
short term goal
dollar cost average
diversification
coverage limit
33. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
yield
well-known discount brokers
bond
chapter 13
34. Reducing investment risk by putting money in several different types of investments.
bankruptcy
diversification
tax deferred
permanent investment
35. Maximum amount of credit a lender will extend to a customer.
grace period
initial investing
credit limit
Rule of 72
36. Amount of money that is set aside for future purchases
investing risk
stock
checking account
savings
37. Fee on credit card for making charges above your credit limit.
collectibles
Securities and Exchange Commission
futures
over-the-limit fee
38. Regular and planned investments
APR - Average Percentage Rate
rate of return
systematic investing
bond
39. Pooling of money from many investors to buy a large & diverse selection of securities
permanent investment
universal default
annual report
mutual funds
40. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
speculative investments
Investing
credit score
inflation
41. US treasury security that matures from a few days to one year
put-and-take account
US Treasury Bills
credit union
dollar cost average
42. Bonds designed for investors wanting to protect again inflation losses
speculative investments
principal
full-service broker
Series I Savings Bond
43. Standard and Poor's and Moody's
full-service broker
social security tax
well-known investor services
values
44. Things that add comfort and pleasure to your life but you can live without if you need to.
dividend
wants
savings
Series EE Savings Bond
45. Earning interest on interest.
compounding interest rate
stock
annual fee
company risk
46. 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.
universal default
share draft account
permanent investment
dollar cost average
47. US treasury security that matures in 30 years
US Treasury Bonds
risk averse
share account
social security tax
48. A detailed record of your personal credit and financial transactions.
credit report
investor services
stock
diversification
49. The amount a corporation pays at a fixed amount when repaying a bond
municipal bonds
interest
stock
Personal Identification Number - PIN
50. Uncontrollable and unpredictable events that cause an investment to lose value
annual report
Personal Identification Number - PIN
non-market risk
social security tax