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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. Associated with owning stock of similar groups of businesses
opportunity cost
stock market
industry risk
stock
2. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.
over-the-limit fee
savings account
credit report
speculative investments
3. Smaller decisions that can result from a major decision.
stock market
APR - Average Percentage Rate
satellite decisions
strategic investing
4. US treasury security that matures in 30 years
dollar cost average
US Treasury Bonds
annual fee
portfolio
5. Collection of investments
chapter 13
portfolio
Temporary investment
Series EE Savings Bond
6. The amount a corporation borrowed in a bond situation
credit history
mutual fund
penny stocks
principal
7. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
Securities and Exchange Commission
principal
stock market
8. Brokers who provide clients with analysis and opinions
full-service broker
state income tax
corporate bonds
share draft account
9. The belief - qualities - or standards that you consider important or desirable.
bond
stocks
dividend
values
10. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
debit card
short term goal
ATM - Automatic Teller Machine
grace period
11. A certificate documenting the shareholder's ownership in the corporation
APR - Average Percentage Rate
time value of money
stock
corporate bonds
12. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
dividend
annual fee
Temporary investment
13. Investors who are afraid to make investments
rate of return
permanent investment
risk averse
APR - Average Percentage Rate
14. 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.'
debit card
universal default
mutual fund
social security tax
15. Investing with a series of regular payments; usually associated with life insurance companies
coverage limit
well-know full-service brokers
annuities
corporate bonds
16. Associated with owning stock of similar groups of businesses
industry risk
Temporary investment
credit
penny stocks
17. The date on which the borrowed money must be repaid
variable expenses
maturity date
compounding interest rate
APR - Average Percentage Rate
18. An amount that credit card companies can charge for the use of a credit card.
mutual funds
risk taker
annual fee
variable expenses
19. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
dividend
savings
credit history
20. Business Weekly & Forbes & Money
non-market risk
well-know financial magazines
pay yourself first - P.Y.F.
credit union
21. Bold and high-risk investments
speculative investments
investor services
strategic investing
checking account
22. Movement of money you receive and the money you spend
variable expenses
cash flow
stock market
wants
23. A technique used for estimating the number of years required to double your money at a given rate
savings
bank
well-known investor services
Rule of 72
24. 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
discount brokers
over-the-limit fee
cash flow
25. 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.
origination fee
Personal Identification Number - PIN
APR - Average Percentage Rate
social security tax
26. US treasury security that matures from a few days to one year
speculative investments
company risk
well-known discount brokers
US Treasury Bills
27. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
well-know full-service brokers
put-and-take account
bankruptcy
28. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
diversification
time value of money
Rule of 72
29. Property consisting of houses and land
dollar cost average
real estate
well-know financial magazines
deductible
30. Movement of money you receive and the money you spend
cash flow
discount brokers
wants
US Treasury Bills
31. The profit from an investment.
tax deferred
yield
risk
budget
32. Brokers who provided little or no information to clients
options
discount brokers
credit report
market risk
33. Spreading risk among many types of investments; one way to minimize risk
diversification
company risk
credit history
risk taker
34. 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.
futures
financial pages
bank
mutual fund
35. Actions that the government might take that would reduce the value of an investment
checking account
delayed gratification
political risk
career
36. The setting aside of money for future use or other investments
tax deferred
Securities and Exchange Commission
collectibles
pay yourself first - P.Y.F.
37. 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.
stock market
well-know financial magazines
Rule of 72
deductible
38. Maximum amount of credit a lender will extend to a customer.
credit limit
risk management
Personal Identification Number - PIN
compounding interest rate
39. Coins & art & memorabilia or other items that are popular from time to time
collectibles
phishing
bond
bankruptcy
40. A general and progressive increase in prices
diversification
futures
inflation
stock market
41. A spending plan for managing money during a given period of time.
budget
social security tax
Series I Savings Bond
inflation
42. Expenses that are not fixed.
risk
compounding interest rate
variable expenses
financial advisers
43. The setting aside of money for future use or other investments
futures
risk averse
credit
pay yourself first - P.Y.F.
44. Standard and Poor's and Moody's
yield
well-known investor services
initial investing
real estate
45. A detailed record of your personal credit and financial transactions.
chapter 13
investor services
systematic investing
credit report
46. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
well-know financial magazines
phishing
dollar cost average
non-market risk
47. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
origination fee
credit
Series EE Savings Bond
put-and-take account
48. Pooling of money from many investors to buy a large & diverse selection of securities
corporate bonds
annual fee
discount brokers
mutual funds
49. A spending plan for managing money during a given period of time.
interest-rate risk
grace period
budget
financial advisers
50. A summary of a person's borrowing and repayment history.
principal
credit history
well-know full-service brokers
savings account