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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. Summary of a corporation's financial condition
annual report
US Treasury Bonds
political risk
cash flow
2. A certificate documenting the shareholder's ownership in the corporation
mutual funds
ATM - Automatic Teller Machine
stock
annual fee
3. The chance that inflation will rise faster than the rate of return on an investment
variable expenses
annual report
annual fee
interest-rate risk
4. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
Temporary investment
deductible
US Treasury Bills
permanent investment
5. US treasury security that matures from a few days to one year
US Treasury Bills
delayed gratification
wants
diversification
6. The use of long-term savings to earn a financial return
Investing
options
risk management
grace period
7. A detailed record of your personal credit and financial transactions.
share account
credit report
annual fee
opportunity cost
8. The entire amount of money you owe to lenders
satellite decisions
portfolio
debt
systematic investing
9. The belief - qualities - or standards that you consider important or desirable.
Rule of 72
satellite decisions
values
credit union
10. Associated with owning stock of only one company
state income tax
share draft account
capital gain
company risk
11. Brokers who provided little or no information to clients
Investing
diversification
wants
discount brokers
12. Debt obligations of corporations
dollar cost average
corporate bonds
Temporary investment
share draft account
13. Management of investment alternatives to maximize the growth of your portfolio
penny stocks
credit report
strategic investing
US Treasury Bonds
14. An amount that credit card companies can charge for the use of a credit card.
mutual fund
annual fee
annual report
compounding interest rate
15. The probability that injury - damage - or loss will occur.
speculative investments
bankruptcy
risk
checking account
16. A payroll deduction collected by employers by law and sent to the state government to support state services.
collectibles
yield
universal default
state income tax
17. The process of dealing with the chance of a potential personal or financial loss.
social security tax
share account
risk management
principal
18. The credit union term for a checking account.
share draft account
financial pages
Temporary investment
spending plan
19. Expenses that are not fixed.
Series EE Savings Bond
stocks
inflation
variable expenses
20. The chance that an investment's value will decrease
US Treasury Bills
principal
investing risk
career
21. US treasury security that matures in 30 years
spending plan
principal
state income tax
US Treasury Bonds
22. Bold and high-risk investments
company risk
futures
speculative investments
spending plan
23. 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.
compounding interest rate
chapter 13
APR - Average Percentage Rate
annuities
24. Movement of money you receive and the money you spend
risk averse
credit score
share draft account
cash flow
25. The increase or decrease in the original purchase price of an investment over a period of time.
US Treasury Bonds
spending plan
rate of return
full-service broker
26. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
Series I Savings Bond
bankruptcy
mutual funds
ATM - Automatic Teller Machine
27. Spreading risk among many types of investments; one way to minimize risk
risk management
career
compounding interest rate
diversification
28. Coins & art & memorabilia or other items that are popular from time to time
compounding interest rate
collectibles
annual fee
stocks
29. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
capital loss
grace period
ATM - Automatic Teller Machine
Securities and Exchange Commission
30. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
dividend
checking account
savings account
31. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
initial investing
Investing
social security tax
32. The increase or decrease in the original purchase price of an investment over a period of time.
inflation
risk management
rate of return
origination fee
33. The amount of money someone is willing to loan you.
principal
diversification
deductible
Personal Identification Number - PIN
34. Associated with owning stock of only one company
company risk
budget
diversification
Series I Savings Bond
35. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
collectibles
compounding interest rate
chapter 13
36. Investors who are afraid to make investments
credit score
well-known financial newspapers
dollar cost average
risk averse
37. Business Weekly & Forbes & Money
chapter 13
maturity date
well-know financial magazines
annual report
38. The credit union term for a savings account.
share account
penny stocks
options
industry risk
39. Movement of money you receive and the money you spend
annuities
cash flow
well-known financial newspapers
mutual fund
40. A term that describes investments on which earnings are not taxed until retirement
phishing
tax deferred
corporate bonds
bankruptcy
41. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
annuities
credit limit
Rule of 72
42. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
municipal bonds
inflation
capital loss
interest-rate risk
43. 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.
debt
mutual funds
delayed gratification
Rule of 72
44. A formal contract to repay borrowed money with interest at fixed intervals
bond
risk taker
risk
full-service broker
45. Investing with a series of regular payments; usually associated with life insurance companies
debt
annuities
capital loss
Temporary investment
46. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
maturity date
Series EE Savings Bond
Rule of 72
47. Debt obligations of corporations
corporate bonds
spyware
chapter 7
US Treasury Bonds
48. Smaller decisions that can result from a major decision.
portfolio
US Treasury Bills
satellite decisions
checking account
49. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
systematic investing
inflation
well-known discount brokers
50. People trained to give investment advise based on your goals & age & lifestyle & etc
grace period
deductible
financial advisers
stocks