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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. Brokers who provided little or no information to clients
yield
Securities and Exchange Commission
portfolio
discount brokers
2. The amount of money someone is willing to loan you.
spyware
Securities and Exchange Commission
capital loss
principal
3. A term that describes investments on which earnings are not taxed until retirement
tax deferred
debit card
principal
spending plan
4. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
satellite decisions
stock market
well-known financial newspapers
5. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
maturity date
credit limit
deductible
financial advisers
6. 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.
strategic investing
Rule of 72
chapter 13
non-market risk
7. 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
diversification
Temporary investment
collectibles
8. The value of What is given up when you choose one option over another.
Rule of 72
pay yourself first - P.Y.F.
chapter 13
opportunity cost
9. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
investor services
budget
rate of return
10. A unit of ownership in a corporation
financial pages
permanent investment
principal
stocks
11. The increase or decrease in the original purchase price of an investment over a period of time.
Temporary investment
rate of return
dollar cost average
penny stocks
12. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
discount brokers
Rule of 72
speculative investments
chapter 13
13. 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
Investing
strategic investing
Series I Savings Bond
14. A chosen pursuit - profession - or occupation
career
diversification
mutual fund
Series I Savings Bond
15. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
Rule of 72
origination fee
deductible
periodic or occasional expenses
16. Spreading risk among many types of investments; one way to minimize risk
diversification
inflation
delayed gratification
variable expenses
17. Summary of a corporation's financial condition
annual report
US Treasury Bonds
credit score
variable expenses
18. Management of investment alternatives to maximize the growth of your portfolio
inflation
wants
pay yourself first - P.Y.F.
strategic investing
19. A spending plan for managing money during a given period of time.
inflation
non-market risk
diversification
budget
20. Investing with a series of regular payments; usually associated with life insurance companies
annuities
over-the-limit fee
non-market risk
share account
21. Debt obligations of state or local governments
risk averse
municipal bonds
deductible
rate of return
22. Spreading risk among many types of investments; one way to minimize risk
universal default
yield
risk averse
diversification
23. Associated with owning stock of only one company
mutual fund
company risk
well-known investor services
satellite decisions
24. Debt obligations of corporations
discount brokers
time value of money
social security tax
corporate bonds
25. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
deductible
wants
full-service broker
Series EE Savings Bond
26. 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.
stock market
universal default
credit limit
satellite decisions
27. The credit union term for a checking account.
options
credit score
share draft account
Series EE Savings Bond
28. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
real estate
state income tax
credit score
values
29. 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.
corporate bonds
delayed gratification
savings account
variable expenses
30. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
debt
financial advisers
principal
31. The place where stocks are bought and sold.
checking account
well-known investor services
bankruptcy
stock market
32. A legal process to get out of debt when you can no longer make all your required payments.
deductible
bankruptcy
annual report
financial advisers
33. A general and progressive increase in prices
inflation
financial advisers
strategic investing
credit
34. Fee on credit card for making charges above your credit limit.
over-the-limit fee
well-know financial magazines
initial investing
risk taker
35. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
coverage limit
phishing
compounding interest rate
values
36. Regular and planned investments
credit limit
delayed gratification
well-known discount brokers
systematic investing
37. The probability that injury - damage - or loss will occur.
values
risk
stock market
delayed gratification
38. The use of long-term savings to earn a financial return
Investing
cash flow
variable expenses
budget
39. The process of dealing with the chance of a potential personal or financial loss.
debit card
risk management
satellite decisions
bank
40. Associated with owning stock of only one company
cash flow
budget
company risk
permanent investment
41. 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.
time value of money
Rule of 72
debt
investor services
42. A bank account against which the depositor can draw checks payable on demand.
market risk
APR - Average Percentage Rate
checking account
capital loss
43. The entire amount of money you owe to lenders
Temporary investment
debt
full-service broker
bond
44. The maximum amount an insurance company will pay if you file a claim.
interest
coverage limit
annual fee
corporate bonds
45. The chance that an investment's value will decrease
investing risk
state income tax
annuities
maturity date
46. A technique used for estimating the number of years required to double your money at a given rate
credit union
speculative investments
Rule of 72
well-know full-service brokers
47. Business Weekly & Forbes & Money
well-know financial magazines
rate of return
principal
stocks
48. Earning interest on interest.
compounding interest rate
credit score
principal
chapter 7
49. The belief - qualities - or standards that you consider important or desirable.
principal
values
compounding interest rate
credit limit
50. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
risk
share account
bond
deductible