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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. The credit union term for a savings account.
US Treasury Bills
real estate
Rule of 72
share account
2. Smaller decisions that can result from a major decision.
investor services
universal default
well-know full-service brokers
satellite decisions
3. Actions that the government might take that would reduce the value of an investment
political risk
chapter 7
spending plan
non-market risk
4. A unit of ownership in a corporation
political risk
mutual funds
principal
stocks
5. Bold and high-risk investments
credit score
investing risk
speculative investments
risk taker
6. 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.
systematic investing
industry risk
stock market
mutual fund
7. A legal process to get out of debt when you can no longer make all your required payments.
bankruptcy
non-market risk
grace period
futures
8. A form of bankruptcy that allows you to erase most of your debt.
financial advisers
chapter 7
pay yourself first - P.Y.F.
company risk
9. The value of What is given up when you choose one option over another.
opportunity cost
yield
put-and-take account
values
10. Maximum amount of credit a lender will extend to a customer.
credit report
credit limit
grace period
well-know full-service brokers
11. US treasury security that matures from a few days to one year
collectibles
cash flow
US Treasury Bills
stock market
12. Things that add comfort and pleasure to your life but you can live without if you need to.
credit score
risk
portfolio
wants
13. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
speculative investments
well-know financial magazines
dividend
14. The value of What is given up when you choose one option over another.
portfolio
opportunity cost
interest-rate risk
well-known financial newspapers
15. The amount a corporation borrowed in a bond situation
delayed gratification
principal
wants
tax deferred
16. The amount a corporation borrowed in a bond situation
risk management
US Treasury Bills
checking account
principal
17. The amount of money someone is willing to loan you.
full-service broker
speculative investments
risk management
principal
18. 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.
universal default
well-know full-service brokers
credit report
US Treasury Bonds
19. An amount that credit card companies can charge for the use of a credit card.
annual fee
market risk
annual report
full-service broker
20. Smaller decisions that can result from a major decision.
portfolio
satellite decisions
checking account
dividend
21. Investors who are afraid to make investments
chapter 13
political risk
universal default
risk averse
22. Standard and Poor's and Moody's
interest-rate risk
credit history
values
well-known investor services
23. People trained to give investment advise based on your goals & age & lifestyle & etc
financial advisers
spyware
share account
risk
24. US treasury security that matures in 30 years
universal default
share account
share account
US Treasury Bonds
25. The process of dealing with the chance of a potential personal or financial loss.
principal
credit limit
Rule of 72
risk management
26. A spending plan for managing money during a given period of time.
market risk
Series EE Savings Bond
capital gain
budget
27. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
credit union
ATM - Automatic Teller Machine
savings
debit card
28. Uncontrollable and unpredictable events that cause an investment to lose value
annual fee
short term goal
risk averse
non-market risk
29. Investing with a series of regular payments; usually associated with life insurance companies
discount brokers
time value of money
principal
annuities
30. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
satellite decisions
time value of money
Series EE Savings Bond
periodic or occasional expenses
31. Expenses that are not fixed.
variable expenses
political risk
portfolio
financial advisers
32. Earning interest on interest.
compounding interest rate
well-known investor services
satellite decisions
checking account
33. A chosen pursuit - profession - or occupation
well-known financial newspapers
periodic or occasional expenses
budget
career
34. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
credit union
diversification
company risk
dollar cost average
35. Bonds designed for investors wanting to protect again inflation losses
dividend
variable expenses
Series I Savings Bond
penny stocks
36. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
financial pages
Series EE Savings Bond
maturity date
discount brokers
37. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
Rule of 72
over-the-limit fee
principal
38. The place where stocks are bought and sold.
coverage limit
risk averse
stock market
mutual fund
39. Wall Street Journal and Barron's
debt
well-known financial newspapers
spending plan
grace period
40. A spending plan for managing money during a given period of time.
well-known discount brokers
savings account
budget
systematic investing
41. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
strategic investing
real estate
deductible
share draft account
42. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
yield
dollar cost average
risk taker
dividend
43. Low-priced stocks of small companies that have no track record
dollar cost average
penny stocks
annual report
strategic investing
44. The credit union term for a checking account.
interest-rate risk
systematic investing
financial advisers
share draft account
45. A goal to be achieved within the next three months.
share draft account
initial investing
stock market
short term goal
46. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
social security tax
wants
checking account
chapter 13
47. The willingness to give up something you want now in return for something better in the future.
options
tax deferred
inflation
delayed gratification
48. Merrill Lynch & Fidelity Investments & American Express
deductible
well-know full-service brokers
strategic investing
universal default
49. Wall Street Journal and Barron's
market risk
portfolio
futures
well-known financial newspapers
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.
checking account
Series I Savings Bond
deductible
stocks