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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. Collection of investments
portfolio
phishing
checking account
credit
2. Associated with owning stock of similar groups of businesses
industry risk
initial investing
capital loss
tax deferred
3. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
chapter 7
initial investing
credit union
well-known investor services
4. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
periodic or occasional expenses
pay yourself first - P.Y.F.
principal
5. Expenses that aren't paid every month and can be either fixed or variable.
futures
periodic or occasional expenses
compounding interest rate
time value of money
6. The date on which the borrowed money must be repaid
time value of money
well-known financial newspapers
wants
maturity date
7. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
risk
spyware
diversification
8. Regular and planned investments
well-know full-service brokers
checking account
systematic investing
investing risk
9. Expenses that aren't paid every month and can be either fixed or variable.
futures
periodic or occasional expenses
risk management
stock market
10. US treasury security that matures from a few days to one year
delayed gratification
portfolio
US Treasury Bills
well-known financial newspapers
11. A payroll deduction collected by employers by law and sent to the state government to support state services.
stock
well-know financial magazines
credit report
state income tax
12. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
market risk
annual report
dollar cost average
penny stocks
13. A legal process to get out of debt when you can no longer make all your required payments.
values
Series I Savings Bond
bankruptcy
well-known discount brokers
14. 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
investing risk
annual report
15. An amount that credit card companies can charge for the use of a credit card.
dollar cost average
over-the-limit fee
annual fee
state income tax
16. A certificate documenting the shareholder's ownership in the corporation
stock
credit history
industry risk
collectibles
17. The probability that injury - damage - or loss will occur.
chapter 7
savings account
options
risk
18. Investment choices that will be held for long periods
permanent investment
values
well-known discount brokers
bankruptcy
19. Associated with owning stock of only one company
company risk
Rule of 72
options
grace period
20. A term that describes investments on which earnings are not taxed until retirement
tax deferred
annual fee
discount brokers
universal default
21. The belief - qualities - or standards that you consider important or desirable.
values
compounding interest rate
APR - Average Percentage Rate
ATM - Automatic Teller Machine
22. Conservative investing; used when you have 'excess' savings
initial investing
financial pages
chapter 7
annuities
23. Investing with a series of regular payments; usually associated with life insurance companies
rate of return
over-the-limit fee
industry risk
annuities
24. Investors who take to take chances
risk taker
spending plan
discount brokers
well-known discount brokers
25. Debt obligations of state or local governments
risk taker
municipal bonds
capital loss
share draft account
26. Brokers who provided little or no information to clients
discount brokers
debit card
annuities
well-known financial newspapers
27. Associated with owning stock of only one company
career
company risk
inflation
cash flow
28. The amount a corporation borrowed in a bond situation
principal
share draft account
diversification
systematic investing
29. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
company risk
credit score
stock market
30. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
discount brokers
ATM - Automatic Teller Machine
market risk
Temporary investment
31. Bold and high-risk investments
spending plan
speculative investments
ATM - Automatic Teller Machine
career
32. The portion of the profits paid to the shareholders of a company.
US Treasury Bonds
spyware
dividend
dollar cost average
33. The unique passcode number you use to get access to your savings and/or checking account
chapter 7
principal
well-know financial magazines
Personal Identification Number - PIN
34. The probability that injury - damage - or loss will occur.
rate of return
bank
risk
Rule of 72
35. A formal contract to repay borrowed money with interest at fixed intervals
short term goal
well-know full-service brokers
bond
Series EE Savings Bond
36. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
bank
variable expenses
diversification
put-and-take account
37. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
mutual funds
market risk
variable expenses
chapter 13
38. The chance that an investment's value will decrease
chapter 13
bank
spyware
investing risk
39. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
pay yourself first - P.Y.F.
interest-rate risk
US Treasury Bills
40. Brokers who provide clients with analysis and opinions
bank
maturity date
interest-rate risk
full-service broker
41. The portion of the profits paid to the shareholders of a company.
dividend
stock
mutual funds
US Treasury Bonds
42. A payroll deduction collected by employers by law and sent to the state government to support state services.
systematic investing
maturity date
state income tax
social security tax
43. 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.
penny stocks
dividend
spyware
principal
44. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
debit card
coverage limit
phishing
45. US treasury security that matures in 2 & 5 & or 10 years
US Treasury Notes
mutual fund
Securities and Exchange Commission
bankruptcy
46. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
capital gain
compounding interest rate
dividend
Series EE Savings Bond
47. Bonds designed for investors wanting to protect again inflation losses
penny stocks
investor services
capital gain
Series I Savings Bond
48. Summary of a corporation's financial condition
ATM - Automatic Teller Machine
Securities and Exchange Commission
annual report
well-known financial newspapers
49. Things that add comfort and pleasure to your life but you can live without if you need to.
credit report
collectibles
Rule of 72
wants
50. The willingness to give up something you want now in return for something better in the future.
futures
credit score
full-service broker
delayed gratification