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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. Another term for budget
non-market risk
futures
spending plan
stock market
2. The entire amount of money you owe to lenders
corporate bonds
share account
Personal Identification Number - PIN
debt
3. The unique passcode number you use to get access to your savings and/or checking account
speculative investments
annual fee
Personal Identification Number - PIN
US Treasury Notes
4. Management of investment alternatives to maximize the growth of your portfolio
Investing
principal
checking account
strategic investing
5. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
pay yourself first - P.Y.F.
Temporary investment
wants
6. A unit of ownership in a corporation
stocks
bankruptcy
US Treasury Bonds
investing risk
7. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
cash flow
stock
time value of money
8. 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.'
bank
market risk
cash flow
debit card
9. Investors who are afraid to make investments
credit union
Investing
risk averse
deductible
10. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
savings
municipal bonds
initial investing
11. Low-priced stocks of small companies that have no track record
APR - Average Percentage Rate
initial investing
mutual funds
penny stocks
12. Earning interest on interest.
strategic investing
inflation
Securities and Exchange Commission
compounding interest rate
13. The date on which the borrowed money must be repaid
maturity date
state income tax
coverage limit
futures
14. The belief - qualities - or standards that you consider important or desirable.
credit report
annual report
values
diversification
15. The date on which the borrowed money must be repaid
principal
credit limit
maturity date
phishing
16. A summary of a person's borrowing and repayment history.
share draft account
credit score
credit history
industry risk
17. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
maturity date
US Treasury Notes
US Treasury Bills
18. People trained to give investment advise based on your goals & age & lifestyle & etc
delayed gratification
bankruptcy
Personal Identification Number - PIN
financial advisers
19. Fee on credit card for making charges above your credit limit.
Personal Identification Number - PIN
social security tax
periodic or occasional expenses
over-the-limit fee
20. The portion of the profits paid to the shareholders of a company.
share draft account
permanent investment
dividend
capital gain
21. Regular and planned investments
risk averse
dollar cost average
systematic investing
periodic or occasional expenses
22. The value of What is given up when you choose one option over another.
share account
risk taker
discount brokers
opportunity cost
23. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
Rule of 72
chapter 7
ATM - Automatic Teller Machine
debt
24. Smaller decisions that can result from a major decision.
yield
satellite decisions
futures
credit
25. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
variable expenses
bankruptcy
short term goal
chapter 13
26. 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.
phishing
checking account
social security tax
Personal Identification Number - PIN
27. Investment choices that will be re-evaluated within a year or less
speculative investments
Temporary investment
checking account
principal
28. Merrill Lynch & Fidelity Investments & American Express
investor services
financial advisers
well-know full-service brokers
risk averse
29. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
mutual fund
APR - Average Percentage Rate
dollar cost average
collectibles
30. The setting aside of money for future use or other investments
credit
credit
periodic or occasional expenses
pay yourself first - P.Y.F.
31. The amount of money someone is willing to loan you.
tax deferred
initial investing
Rule of 72
principal
32. The place where stocks are bought and sold.
savings account
stock market
credit report
state income tax
33. Bonds designed for investors wanting to protect again inflation losses
annuities
Series I Savings Bond
opportunity cost
share draft account
34. Movement of money you receive and the money you spend
Rule of 72
cash flow
credit report
savings
35. The setting aside of money for future use or other investments
financial advisers
dollar cost average
spyware
pay yourself first - P.Y.F.
36. Investing with a series of regular payments; usually associated with life insurance companies
real estate
speculative investments
annuities
deductible
37. The increase or decrease in the original purchase price of an investment over a period of time.
permanent investment
rate of return
Securities and Exchange Commission
origination fee
38. Spreading risk among many types of investments; one way to minimize risk
spending plan
diversification
budget
initial investing
39. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
portfolio
Rule of 72
chapter 7
40. A detailed record of your personal credit and financial transactions.
state income tax
credit report
well-know full-service brokers
APR - Average Percentage Rate
41. Bold and high-risk investments
yield
well-know full-service brokers
speculative investments
credit limit
42. US treasury security that matures in 2 & 5 & or 10 years
values
cash flow
corporate bonds
US Treasury Notes
43. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
pay yourself first - P.Y.F.
bank
yield
rate of return
44. A goal to be achieved within the next three months.
periodic or occasional expenses
origination fee
diversification
short term goal
45. Regular and planned investments
universal default
options
systematic investing
wants
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
phishing
dividend
risk averse
47. A term that describes investments on which earnings are not taxed until retirement
checking account
pay yourself first - P.Y.F.
tax deferred
opportunity cost
48. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
career
annual fee
checking account
49. Newspapers list of securities
financial pages
deductible
spending plan
debt
50. The increase or decrease in the original purchase price of an investment over a period of time.
spyware
rate of return
annual report
annuities