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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. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
variable expenses
credit score
market risk
US Treasury Bonds
2. Debt obligations of state or local governments
well-know full-service brokers
dollar cost average
municipal bonds
annual fee
3. A technique used for estimating the number of years required to double your money at a given rate
rate of return
Rule of 72
credit history
well-known discount brokers
4. US treasury security that matures in 30 years
US Treasury Bonds
bond
chapter 13
debt
5. A certificate documenting the shareholder's ownership in the corporation
capital loss
career
stock
capital gain
6. A spending plan for managing money during a given period of time.
budget
grace period
risk management
deductible
7. The profit from an investment.
dollar cost average
satellite decisions
well-know full-service brokers
yield
8. A legal process to get out of debt when you can no longer make all your required payments.
state income tax
bankruptcy
spyware
savings account
9. Contacts to buy and sell commodities or stocks for a specific price on a specific date
risk management
futures
share account
US Treasury Notes
10. The credit union term for a savings account.
share account
rate of return
budget
annual report
11. Wall Street Journal and Barron's
systematic investing
risk averse
tax deferred
well-known financial newspapers
12. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
risk taker
annuities
pay yourself first - P.Y.F.
13. Investing with a series of regular payments; usually associated with life insurance companies
annuities
financial pages
share account
interest
14. 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.
full-service broker
mutual fund
US Treasury Bills
social security tax
15. Bold and high-risk investments
financial advisers
universal default
stock
speculative investments
16. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
values
options
compounding interest rate
debt
17. 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.'
yield
compounding interest rate
debit card
stocks
18. The amount of money someone is willing to loan you.
principal
investor services
spending plan
real estate
19. A goal to be achieved within the next three months.
maturity date
compounding interest rate
investor services
short term goal
20. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
US Treasury Notes
origination fee
diversification
credit score
21. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
put-and-take account
spyware
compounding interest rate
22. The process of dealing with the chance of a potential personal or financial loss.
Series I Savings Bond
Securities and Exchange Commission
credit report
risk management
23. Amount of money that is set aside for future purchases
savings
over-the-limit fee
social security tax
Investing
24. A spending plan for managing money during a given period of time.
budget
career
opportunity cost
Securities and Exchange Commission
25. Movement of money you receive and the money you spend
cash flow
pay yourself first - P.Y.F.
risk taker
put-and-take account
26. US treasury security that matures in 30 years
phishing
US Treasury Bonds
variable expenses
mutual fund
27. Debt obligations of state or local governments
futures
US Treasury Notes
bond
municipal bonds
28. Investment choices that will be held for long periods
coverage limit
interest-rate risk
mutual funds
permanent investment
29. Charles Schwab & TD Ameritrade & E*TRADE
initial investing
mutual fund
well-known discount brokers
discount brokers
30. Investors who take to take chances
coverage limit
phishing
chapter 7
risk taker
31. A general and progressive increase in prices
well-know financial magazines
wants
inflation
maturity date
32. The credit union term for a checking account.
share draft account
corporate bonds
company risk
values
33. Associated with owning stock of only one company
strategic investing
company risk
variable expenses
Personal Identification Number - PIN
34. Wall Street Journal and Barron's
options
well-known financial newspapers
options
maturity date
35. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
stock market
permanent investment
maturity date
36. Expenses that are not fixed.
variable expenses
penny stocks
Personal Identification Number - PIN
satellite decisions
37. The maximum amount an insurance company will pay if you file a claim.
financial pages
collectibles
coverage limit
credit score
38. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
deductible
rate of return
US Treasury Notes
dollar cost average
39. Companies that provide extensive financial data to clients
principal
mutual fund
investor services
full-service broker
40. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
capital loss
ATM - Automatic Teller Machine
compounding interest rate
savings account
41. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
stock
investor services
bank
42. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
company risk
credit union
grace period
investing risk
43. 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.
inflation
speculative investments
deductible
savings account
44. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
opportunity cost
share account
spyware
45. The maximum amount an insurance company will pay if you file a claim.
coverage limit
stocks
systematic investing
stock market
46. Brokers who provide clients with analysis and opinions
short term goal
bank
full-service broker
ATM - Automatic Teller Machine
47. The chance that inflation will rise faster than the rate of return on an investment
penny stocks
inflation
financial pages
interest-rate risk
48. Merrill Lynch & Fidelity Investments & American Express
career
speculative investments
futures
well-know full-service brokers
49. The entire amount of money you owe to lenders
Temporary investment
debt
career
principal
50. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
US Treasury Notes
credit
grace period
put-and-take account