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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. Business Weekly & Forbes & Money
capital gain
credit
Rule of 72
well-know financial magazines
2. 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.
over-the-limit fee
Investing
Rule of 72
annuities
3. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
full-service broker
savings account
political risk
4. Pooling of money from many investors to buy a large & diverse selection of securities
US Treasury Notes
investor services
mutual funds
career
5. Summary of a corporation's financial condition
periodic or occasional expenses
stock
annual report
Rule of 72
6. Regular and planned investments
credit report
state income tax
risk averse
systematic investing
7. The increase or decrease in the original purchase price of an investment over a period of time.
non-market risk
rate of return
diversification
savings account
8. 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.
maturity date
permanent investment
savings account
wants
9. The value of What is given up when you choose one option over another.
permanent investment
opportunity cost
investor services
career
10. A form of bankruptcy that allows you to erase most of your debt.
share draft account
phishing
chapter 7
credit union
11. A term that describes investments on which earnings are not taxed until retirement
bank
annual report
discount brokers
tax deferred
12. People trained to give investment advise based on your goals & age & lifestyle & etc
financial advisers
diversification
maturity date
investing risk
13. The portion of the profits paid to the shareholders of a company.
Series EE Savings Bond
dividend
well-known discount brokers
credit union
14. A goal to be achieved within the next three months.
over-the-limit fee
investor services
risk taker
short term goal
15. 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.'
Securities and Exchange Commission
APR - Average Percentage Rate
debit card
tax deferred
16. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
company risk
credit union
futures
17. Investors who take to take chances
risk taker
investing risk
annual report
company risk
18. The probability that injury - damage - or loss will occur.
risk
well-know financial magazines
industry risk
Personal Identification Number - PIN
19. US treasury security that matures in 2 & 5 & or 10 years
risk averse
well-known financial newspapers
financial pages
US Treasury Notes
20. A chosen pursuit - profession - or occupation
capital loss
risk
risk management
career
21. The amount a corporation borrowed in a bond situation
principal
Rule of 72
rate of return
risk management
22. 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.
annual fee
Rule of 72
universal default
real estate
23. The date on which the borrowed money must be repaid
bank
maturity date
periodic or occasional expenses
mutual fund
24. A bank account against which the depositor can draw checks payable on demand.
mutual funds
credit
rate of return
checking account
25. The place where stocks are bought and sold.
over-the-limit fee
spyware
stock market
corporate bonds
26. Spreading risk among many types of investments; one way to minimize risk
diversification
US Treasury Notes
non-market risk
Series EE Savings Bond
27. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
Series I Savings Bond
share draft account
phishing
credit union
28. A summary of a person's borrowing and repayment history.
corporate bonds
risk averse
credit history
rate of return
29. Things that add comfort and pleasure to your life but you can live without if you need to.
checking account
permanent investment
Investing
wants
30. The place where stocks are bought and sold.
grace period
Investing
stock market
universal default
31. Debt obligations of state or local governments
stocks
pay yourself first - P.Y.F.
yield
municipal bonds
32. Management of investment alternatives to maximize the growth of your portfolio
strategic investing
values
risk averse
US Treasury Bonds
33. A unit of ownership in a corporation
initial investing
stocks
US Treasury Bills
municipal bonds
34. Fee on credit card for making charges above your credit limit.
systematic investing
financial pages
savings account
over-the-limit fee
35. Maximum amount of credit a lender will extend to a customer.
deductible
budget
market risk
credit limit
36. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
share draft account
phishing
tax deferred
inflation
37. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
annuities
risk averse
time value of money
mutual funds
38. Investment choices that will be re-evaluated within a year or less
Temporary investment
stock
interest
debit card
39. Collection of investments
portfolio
ATM - Automatic Teller Machine
discount brokers
state income tax
40. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
state income tax
options
municipal bonds
market risk
41. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
interest-rate risk
options
corporate bonds
spyware
42. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
well-know full-service brokers
capital loss
industry risk
financial advisers
43. Expenses that are not fixed.
annual report
satellite decisions
futures
variable expenses
44. The maximum amount an insurance company will pay if you file a claim.
speculative investments
coverage limit
pay yourself first - P.Y.F.
annual report
45. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
dollar cost average
chapter 13
capital gain
budget
46. Amount of money that is set aside for future purchases
savings
mutual fund
universal default
tax deferred
47. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
initial investing
Rule of 72
put-and-take account
48. A chosen pursuit - profession - or occupation
real estate
ATM - Automatic Teller Machine
US Treasury Notes
career
49. Maximum amount of credit a lender will extend to a customer.
penny stocks
Temporary investment
real estate
credit limit
50. Standard and Poor's and Moody's
Investing
chapter 7
well-known investor services
budget