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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 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.
universal default
share account
Rule of 72
tax deferred
2. US treasury security that matures in 2 & 5 & or 10 years
Temporary investment
futures
US Treasury Notes
well-known discount brokers
3. Reducing investment risk by putting money in several different types of investments.
wants
risk averse
annual fee
diversification
4. Expenses that aren't paid every month and can be either fixed or variable.
put-and-take account
periodic or occasional expenses
well-known investor services
annuities
5. Actions that the government might take that would reduce the value of an investment
coverage limit
share account
political risk
origination fee
6. Management of investment alternatives to maximize the growth of your portfolio
short term goal
credit union
strategic investing
company risk
7. Fee on credit card for making charges above your credit limit.
interest-rate risk
over-the-limit fee
variable expenses
options
8. Expenses that are not fixed.
variable expenses
Personal Identification Number - PIN
capital loss
put-and-take account
9. 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
spyware
wants
mutual fund
10. A certificate documenting the shareholder's ownership in the corporation
stock
company risk
budget
career
11. Charles Schwab & TD Ameritrade & E*TRADE
mutual funds
Securities and Exchange Commission
well-known discount brokers
risk
12. US treasury security that matures in 30 years
credit history
credit report
ATM - Automatic Teller Machine
US Treasury Bonds
13. Earning interest on interest.
capital loss
social security tax
corporate bonds
compounding interest rate
14. Losses in an investment as a result of the business cycle
non-market risk
bankruptcy
market risk
US Treasury Notes
15. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
full-service broker
dollar cost average
delayed gratification
chapter 13
16. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
permanent investment
debt
credit report
17. Newspapers list of securities
US Treasury Notes
Series I Savings Bond
financial pages
share draft account
18. Merrill Lynch & Fidelity Investments & American Express
ATM - Automatic Teller Machine
political risk
options
well-know full-service brokers
19. Property consisting of houses and land
checking account
non-market risk
strategic investing
real estate
20. The portion of the profits paid to the shareholders of a company.
dividend
discount brokers
Securities and Exchange Commission
credit history
21. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
career
career
debt
Series EE Savings Bond
22. Movement of money you receive and the money you spend
chapter 13
cash flow
industry risk
market risk
23. Associated with owning stock of similar groups of businesses
checking account
annuities
inflation
industry risk
24. Low-priced stocks of small companies that have no track record
penny stocks
variable expenses
financial advisers
annuities
25. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
phishing
credit score
capital loss
portfolio
26. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
chapter 13
chapter 13
deductible
Series I Savings Bond
27. Earning interest on interest.
compounding interest rate
credit
political risk
social security tax
28. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
stock market
savings account
chapter 7
29. The entire amount of money you owe to lenders
debt
stock market
collectibles
inflation
30. Losses in an investment as a result of the business cycle
risk taker
market risk
career
Investing
31. Smaller decisions that can result from a major decision.
well-know full-service brokers
satellite decisions
tax deferred
futures
32. A general and progressive increase in prices
inflation
Temporary investment
financial advisers
risk averse
33. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
credit history
penny stocks
industry risk
34. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
cash flow
checking account
periodic or occasional expenses
grace period
35. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
share draft account
US Treasury Bonds
Personal Identification Number - PIN
36. The increase or decrease in the original purchase price of an investment over a period of time.
maturity date
rate of return
compounding interest rate
variable expenses
37. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
delayed gratification
real estate
grace period
38. A technique used for estimating the number of years required to double your money at a given rate
bankruptcy
Series I Savings Bond
Rule of 72
penny stocks
39. Investment choices that will be re-evaluated within a year or less
dollar cost average
Temporary investment
bond
stock market
40. 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.
full-service broker
collectibles
social security tax
speculative investments
41. Associated with owning stock of similar groups of businesses
diversification
compounding interest rate
chapter 13
industry risk
42. Business Weekly & Forbes & Money
strategic investing
well-know financial magazines
speculative investments
phishing
43. A summary of a person's borrowing and repayment history.
credit history
bankruptcy
deductible
US Treasury Bills
44. Brokers who provided little or no information to clients
strategic investing
values
wants
discount brokers
45. Associated with owning stock of only one company
municipal bonds
share account
company risk
non-market risk
46. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
permanent investment
debt
chapter 13
wants
47. A goal to be achieved within the next three months.
principal
short term goal
ATM - Automatic Teller Machine
credit report
48. The date on which the borrowed money must be repaid
maturity date
risk taker
social security tax
risk management
49. Investment choices that will be held for long periods
permanent investment
industry risk
diversification
Rule of 72
50. Contacts to buy and sell commodities or stocks for a specific price on a specific date
speculative investments
futures
cash flow
risk management