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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. The probability that injury - damage - or loss will occur.
Personal Identification Number - PIN
risk averse
strategic investing
risk
2. Things that add comfort and pleasure to your life but you can live without if you need to.
Rule of 72
speculative investments
grace period
wants
3. Losses in an investment as a result of the business cycle
market risk
credit report
corporate bonds
variable expenses
4. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
delayed gratification
credit union
US Treasury Bills
origination fee
5. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
stock market
dividend
short term goal
capital loss
6. An amount that credit card companies can charge for the use of a credit card.
risk averse
savings
financial pages
annual fee
7. The profit from an investment.
yield
bank
penny stocks
phishing
8. A goal to be achieved within the next three months.
short term goal
credit limit
origination fee
risk
9. Bold and high-risk investments
inflation
interest-rate risk
discount brokers
speculative investments
10. Investing with a series of regular payments; usually associated with life insurance companies
universal default
well-know full-service brokers
annuities
Securities and Exchange Commission
11. The value of What is given up when you choose one option over another.
opportunity cost
bankruptcy
values
coverage limit
12. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
annual fee
diversification
capital gain
career
13. A term that describes investments on which earnings are not taxed until retirement
Personal Identification Number - PIN
industry risk
tax deferred
well-known discount brokers
14. Standard and Poor's and Moody's
interest-rate risk
well-known investor services
non-market risk
state income tax
15. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
budget
dividend
phishing
Rule of 72
16. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
US Treasury Bills
principal
delayed gratification
17. 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.
dividend
universal default
spending plan
Rule of 72
18. Collection of investments
mutual funds
wants
portfolio
over-the-limit fee
19. The amount a corporation pays at a fixed amount when repaying a bond
stock
futures
interest
dividend
20. Investment choices that will be held for long periods
well-know financial magazines
tax deferred
industry risk
permanent investment
21. An amount that credit card companies can charge for the use of a credit card.
interest
annual fee
interest
delayed gratification
22. A bank account against which the depositor can draw checks payable on demand.
deductible
checking account
Rule of 72
satellite decisions
23. Management of investment alternatives to maximize the growth of your portfolio
delayed gratification
principal
strategic investing
put-and-take account
24. Smaller decisions that can result from a major decision.
diversification
bankruptcy
satellite decisions
stocks
25. 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
portfolio
company risk
investing risk
26. The amount of money someone is willing to loan you.
share draft account
company risk
options
principal
27. US treasury security that matures from a few days to one year
checking account
US Treasury Bills
Rule of 72
debit card
28. Expenses that are not fixed.
variable expenses
dividend
universal default
coverage limit
29. Low-priced stocks of small companies that have no track record
dollar cost average
share account
penny stocks
credit
30. Debt obligations of corporations
well-known discount brokers
corporate bonds
share draft account
spyware
31. A legal process to get out of debt when you can no longer make all your required payments.
well-known discount brokers
bankruptcy
chapter 13
annual fee
32. The credit union term for a savings account.
checking account
credit report
share account
US Treasury Bonds
33. Fee on credit card for making charges above your credit limit.
over-the-limit fee
municipal bonds
investor services
well-known investor services
34. The date on which the borrowed money must be repaid
state income tax
maturity date
stock
industry risk
35. Regular and planned investments
US Treasury Notes
systematic investing
initial investing
well-known financial newspapers
36. Merrill Lynch & Fidelity Investments & American Express
bankruptcy
over-the-limit fee
chapter 7
well-know full-service brokers
37. Uncontrollable and unpredictable events that cause an investment to lose value
Investing
principal
non-market risk
spyware
38. Property consisting of houses and land
well-known discount brokers
real estate
checking account
Rule of 72
39. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
share draft account
real estate
credit
capital gain
40. A government sector that requires all public corporations to make annual reports available to their stockholders
compounding interest rate
capital loss
Securities and Exchange Commission
risk
41. Maximum amount of credit a lender will extend to a customer.
credit limit
Investing
credit score
options
42. Summary of a corporation's financial condition
risk management
annual report
spyware
US Treasury Bonds
43. The increase or decrease in the original purchase price of an investment over a period of time.
penny stocks
industry risk
rate of return
corporate bonds
44. A technique used for estimating the number of years required to double your money at a given rate
capital gain
inflation
Rule of 72
values
45. A unit of ownership in a corporation
stocks
municipal bonds
well-known discount brokers
diversification
46. Conservative investing; used when you have 'excess' savings
dividend
risk
put-and-take account
initial investing
47. Another term for budget
spending plan
satellite decisions
annuities
dollar cost average
48. A formal contract to repay borrowed money with interest at fixed intervals
time value of money
futures
bond
savings
49. Debt obligations of state or local governments
dividend
municipal bonds
speculative investments
checking account
50. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
Securities and Exchange Commission
inflation
options
permanent investment