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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. Pooling of money from many investors to buy a large & diverse selection of securities
dollar cost average
mutual funds
capital loss
compounding interest rate
2. The place where stocks are bought and sold.
real estate
share account
stock market
chapter 13
3. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
over-the-limit fee
coverage limit
origination fee
opportunity cost
4. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
principal
financial pages
investing risk
chapter 13
5. A formal contract to repay borrowed money with interest at fixed intervals
Rule of 72
risk
bond
portfolio
6. The setting aside of money for future use or other investments
over-the-limit fee
credit history
pay yourself first - P.Y.F.
put-and-take account
7. Contacts to buy and sell commodities or stocks for a specific price on a specific date
mutual fund
futures
annual report
strategic investing
8. A chosen pursuit - profession - or occupation
career
corporate bonds
investor services
systematic investing
9. Management of investment alternatives to maximize the growth of your portfolio
budget
spyware
well-known financial newspapers
strategic investing
10. Wall Street Journal and Barron's
political risk
periodic or occasional expenses
universal default
well-known financial newspapers
11. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
Personal Identification Number - PIN
interest
pay yourself first - P.Y.F.
12. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
Investing
grace period
variable expenses
phishing
13. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
financial pages
US Treasury Bonds
Rule of 72
credit score
14. The setting aside of money for future use or other investments
futures
pay yourself first - P.Y.F.
bond
non-market risk
15. The date on which the borrowed money must be repaid
maturity date
coverage limit
annual fee
short term goal
16. The place where stocks are bought and sold.
principal
social security tax
credit union
stock market
17. 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.
savings
spyware
APR - Average Percentage Rate
cash flow
18. The portion of the profits paid to the shareholders of a company.
dividend
over-the-limit fee
credit union
dollar cost average
19. A summary of a person's borrowing and repayment history.
interest
futures
yield
credit history
20. Management of investment alternatives to maximize the growth of your portfolio
share draft account
opportunity cost
wants
strategic investing
21. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
bankruptcy
put-and-take account
well-known discount brokers
22. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
savings account
Series EE Savings Bond
annual report
tax deferred
23. Companies that provide extensive financial data to clients
investor services
budget
Series I Savings Bond
capital loss
24. A goal to be achieved within the next three months.
Personal Identification Number - PIN
short term goal
origination fee
Series I Savings Bond
25. A general and progressive increase in prices
credit history
US Treasury Notes
inflation
capital loss
26. Conservative investing; used when you have 'excess' savings
variable expenses
over-the-limit fee
initial investing
origination fee
27. Spreading risk among many types of investments; one way to minimize risk
diversification
penny stocks
financial advisers
industry risk
28. A detailed record of your personal credit and financial transactions.
credit union
maturity date
collectibles
credit report
29. Investment choices that will be re-evaluated within a year or less
stocks
Rule of 72
full-service broker
Temporary investment
30. A spending plan for managing money during a given period of time.
state income tax
budget
Personal Identification Number - PIN
systematic investing
31. Brokers who provided little or no information to clients
dollar cost average
inflation
risk averse
discount brokers
32. Losses in an investment as a result of the business cycle
market risk
state income tax
APR - Average Percentage Rate
credit limit
33. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
credit score
well-known discount brokers
dollar cost average
grace period
34. 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.
Series EE Savings Bond
variable expenses
social security tax
origination fee
35. Associated with owning stock of similar groups of businesses
social security tax
phishing
industry risk
mutual fund
36. A summary of a person's borrowing and repayment history.
well-known financial newspapers
risk averse
credit history
dividend
37. A technique used for estimating the number of years required to double your money at a given rate
US Treasury Bills
Personal Identification Number - PIN
penny stocks
Rule of 72
38. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
risk taker
interest-rate risk
credit
permanent investment
39. Low-priced stocks of small companies that have no track record
phishing
penny stocks
political risk
Series I Savings Bond
40. Companies that provide extensive financial data to clients
well-known financial newspapers
savings
investor services
share draft account
41. Movement of money you receive and the money you spend
savings
political risk
cash flow
full-service broker
42. 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
budget
diversification
annuities
43. Fee on credit card for making charges above your credit limit.
credit history
credit score
over-the-limit fee
real estate
44. A certificate documenting the shareholder's ownership in the corporation
put-and-take account
stock
bond
satellite decisions
45. Regular and planned investments
penny stocks
strategic investing
systematic investing
yield
46. A unit of ownership in a corporation
stocks
spyware
systematic investing
credit
47. Spreading risk among many types of investments; one way to minimize risk
diversification
risk
inflation
interest-rate risk
48. A goal to be achieved within the next three months.
real estate
tax deferred
short term goal
Series EE Savings Bond
49. A bank account against which the depositor can draw checks payable on demand.
credit
maturity date
checking account
share draft account
50. The amount a corporation borrowed in a bond situation
full-service broker
risk averse
satellite decisions
principal