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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.
savings account
checking account
risk
APR - Average Percentage Rate
2. Maximum amount of credit a lender will extend to a customer.
credit limit
full-service broker
spending plan
chapter 7
3. Associated with owning stock of similar groups of businesses
well-know financial magazines
APR - Average Percentage Rate
diversification
industry risk
4. 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.
grace period
stock market
risk
mutual fund
5. The credit union term for a savings account.
share account
systematic investing
non-market risk
systematic investing
6. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
bank
well-known financial newspapers
chapter 13
7. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
US Treasury Bonds
political risk
pay yourself first - P.Y.F.
bank
8. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
deductible
values
Investing
universal default
9. Another term for budget
values
spending plan
risk averse
chapter 13
10. The increase or decrease in the original purchase price of an investment over a period of time.
well-known discount brokers
rate of return
career
options
11. A goal to be achieved within the next three months.
short term goal
well-know full-service brokers
non-market risk
annuities
12. Investment choices that will be held for long periods
time value of money
financial advisers
permanent investment
checking account
13. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
bond
market risk
bankruptcy
Series EE Savings Bond
14. Debt obligations of corporations
corporate bonds
over-the-limit fee
market risk
dividend
15. Newspapers list of securities
share account
financial pages
penny stocks
bankruptcy
16. The date on which the borrowed money must be repaid
stock market
social security tax
risk taker
maturity date
17. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
debit card
Securities and Exchange Commission
bank
social security tax
18. Bonds designed for investors wanting to protect again inflation losses
origination fee
inflation
Series I Savings Bond
Securities and Exchange Commission
19. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
speculative investments
share draft account
initial investing
Series EE Savings Bond
20. The chance that an investment's value will decrease
investing risk
social security tax
Rule of 72
US Treasury Bonds
21. The process of dealing with the chance of a potential personal or financial loss.
chapter 13
spyware
risk management
rate of return
22. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
US Treasury Notes
Rule of 72
mutual funds
dollar cost average
23. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
Personal Identification Number - PIN
systematic investing
origination fee
US Treasury Bonds
24. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
deductible
company risk
annuities
chapter 13
25. Investors who are afraid to make investments
stocks
investing risk
well-know full-service brokers
risk averse
26. Actions that the government might take that would reduce the value of an investment
risk
savings
time value of money
political risk
27. Brokers who provided little or no information to clients
financial advisers
debit card
grace period
discount brokers
28. US treasury security that matures from a few days to one year
US Treasury Bills
risk
mutual funds
put-and-take account
29. Actions that the government might take that would reduce the value of an investment
tax deferred
financial pages
political risk
annuities
30. Bonds designed for investors wanting to protect again inflation losses
US Treasury Bonds
Series I Savings Bond
discount brokers
speculative investments
31. Investing with a series of regular payments; usually associated with life insurance companies
well-know financial magazines
social security tax
maturity date
annuities
32. Debt obligations of state or local governments
phishing
municipal bonds
savings account
bankruptcy
33. The profit from an investment.
yield
Investing
capital loss
investor services
34. Coins & art & memorabilia or other items that are popular from time to time
debt
tax deferred
share account
collectibles
35. The portion of the profits paid to the shareholders of a company.
discount brokers
dividend
risk
share draft account
36. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
strategic investing
ATM - Automatic Teller Machine
bond
options
37. The entire amount of money you owe to lenders
chapter 7
debt
spending plan
universal default
38. The value of What is given up when you choose one option over another.
investor services
social security tax
opportunity cost
short term goal
39. A detailed record of your personal credit and financial transactions.
credit report
maturity date
budget
risk
40. A payroll deduction collected by employers by law and sent to the state government to support state services.
social security tax
state income tax
well-know financial magazines
Securities and Exchange Commission
41. A legal process to get out of debt when you can no longer make all your required payments.
well-know full-service brokers
pay yourself first - P.Y.F.
bankruptcy
mutual funds
42. Investing with a series of regular payments; usually associated with life insurance companies
annuities
Rule of 72
bond
collectibles
43. The entire amount of money you owe to lenders
debt
speculative investments
company risk
market risk
44. Collection of investments
credit history
US Treasury Bonds
portfolio
stock
45. The process of dealing with the chance of a potential personal or financial loss.
diversification
bank
risk management
non-market risk
46. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
checking account
phishing
capital loss
tax deferred
47. A technique used for estimating the number of years required to double your money at a given rate
periodic or occasional expenses
penny stocks
annual fee
Rule of 72
48. Associated with owning stock of similar groups of businesses
industry risk
risk taker
universal default
credit history
49. 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.
chapter 7
social security tax
chapter 7
pay yourself first - P.Y.F.
50. The setting aside of money for future use or other investments
state income tax
principal
pay yourself first - P.Y.F.
systematic investing