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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. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.
budget
annuities
wants
mutual fund
2. The profit from an investment.
yield
investor services
maturity date
market risk
3. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
grace period
credit
annuities
bank
4. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
cash flow
credit score
risk taker
5. The willingness to give up something you want now in return for something better in the future.
delayed gratification
chapter 7
share draft account
inflation
6. US treasury security that matures in 2 & 5 & or 10 years
credit limit
US Treasury Notes
values
satellite decisions
7. 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
risk management
risk taker
chapter 13
8. Merrill Lynch & Fidelity Investments & American Express
strategic investing
US Treasury Bonds
corporate bonds
well-know full-service brokers
9. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
financial advisers
US Treasury Bonds
deductible
chapter 13
10. Investment choices that will be re-evaluated within a year or less
Temporary investment
well-know financial magazines
origination fee
investing risk
11. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
well-known financial newspapers
phishing
maturity date
debt
12. A technique used for estimating the number of years required to double your money at a given rate
Investing
Rule of 72
origination fee
compounding interest rate
13. A unit of ownership in a corporation
speculative investments
stocks
share account
initial investing
14. The entire amount of money you owe to lenders
principal
debt
non-market risk
US Treasury Notes
15. Business Weekly & Forbes & Money
well-know financial magazines
Investing
short term goal
US Treasury Bonds
16. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
Rule of 72
diversification
futures
options
17. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
stock
bank
industry risk
values
18. Investing with a series of regular payments; usually associated with life insurance companies
grace period
Temporary investment
annuities
systematic investing
19. The probability that injury - damage - or loss will occur.
risk
stock market
risk taker
stock
20. A payroll deduction collected by employers by law and sent to the state government to support state services.
financial pages
coverage limit
discount brokers
state income tax
21. Debt obligations of corporations
compounding interest rate
US Treasury Bills
mutual funds
corporate bonds
22. 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.'
collectibles
debit card
permanent investment
futures
23. Regular and planned investments
corporate bonds
financial pages
systematic investing
spending plan
24. Low-priced stocks of small companies that have no track record
chapter 7
penny stocks
principal
savings
25. Management of investment alternatives to maximize the growth of your portfolio
strategic investing
US Treasury Bills
well-known investor services
credit score
26. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
credit score
capital loss
risk averse
ATM - Automatic Teller Machine
27. Conservative investing; used when you have 'excess' savings
well-known financial newspapers
initial investing
full-service broker
risk
28. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
Rule of 72
deductible
chapter 13
interest
29. The increase or decrease in the original purchase price of an investment over a period of time.
financial advisers
delayed gratification
delayed gratification
rate of return
30. A spending plan for managing money during a given period of time.
risk taker
budget
Personal Identification Number - PIN
financial pages
31. 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.
well-known discount brokers
opportunity cost
credit report
spyware
32. Property consisting of houses and land
risk taker
state income tax
investing risk
real estate
33. Spreading risk among many types of investments; one way to minimize risk
initial investing
capital gain
Rule of 72
diversification
34. Charles Schwab & TD Ameritrade & E*TRADE
coverage limit
risk
well-known discount brokers
credit union
35. Maximum amount of credit a lender will extend to a customer.
credit limit
diversification
company risk
financial pages
36. 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.
options
short term goal
well-know full-service brokers
universal default
37. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
credit report
chapter 7
well-know full-service brokers
38. The value of What is given up when you choose one option over another.
ATM - Automatic Teller Machine
put-and-take account
annual report
opportunity cost
39. Investment choices that will be held for long periods
ATM - Automatic Teller Machine
permanent investment
portfolio
savings
40. Investors who are afraid to make investments
speculative investments
options
risk averse
stock
41. The amount of money someone is willing to loan you.
maturity date
company risk
principal
short term goal
42. The chance that an investment's value will decrease
well-know financial magazines
universal default
investing risk
satellite decisions
43. People trained to give investment advise based on your goals & age & lifestyle & etc
financial advisers
Investing
financial pages
APR - Average Percentage Rate
44. A goal to be achieved within the next three months.
maturity date
short term goal
risk averse
budget
45. Debt obligations of corporations
credit union
interest-rate risk
corporate bonds
company risk
46. A general and progressive increase in prices
financial advisers
dollar cost average
inflation
Temporary investment
47. A chosen pursuit - profession - or occupation
non-market risk
short term goal
career
well-known investor services
48. Actions that the government might take that would reduce the value of an investment
well-know financial magazines
Investing
put-and-take account
political risk
49. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
strategic investing
financial advisers
chapter 13
50. The credit union term for a checking account.
share draft account
market risk
company risk
capital gain