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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
interest-rate risk
principal
well-know financial magazines
spending plan
2. A technique used for estimating the number of years required to double your money at a given rate
credit limit
Rule of 72
US Treasury Notes
compounding interest rate
3. Reducing investment risk by putting money in several different types of investments.
permanent investment
annual fee
diversification
yield
4. Spreading risk among many types of investments; one way to minimize risk
penny stocks
diversification
industry risk
financial pages
5. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
credit history
over-the-limit fee
non-market risk
6. The credit union term for a savings account.
financial pages
portfolio
annual report
share account
7. US treasury security that matures from a few days to one year
US Treasury Bills
investor services
diversification
satellite decisions
8. US treasury security that matures in 2 & 5 & or 10 years
short term goal
time value of money
industry risk
US Treasury Notes
9. Movement of money you receive and the money you spend
chapter 7
risk management
chapter 7
cash flow
10. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
savings
risk management
dividend
11. Bold and high-risk investments
speculative investments
dividend
mutual fund
stock market
12. The place where stocks are bought and sold.
well-know full-service brokers
spyware
US Treasury Bills
stock market
13. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
values
chapter 7
cash flow
ATM - Automatic Teller Machine
14. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
non-market risk
capital gain
dividend
Series I Savings Bond
15. The profit from an investment.
budget
municipal bonds
yield
chapter 7
16. Debt obligations of state or local governments
company risk
opportunity cost
market risk
municipal bonds
17. The portion of the profits paid to the shareholders of a company.
dividend
coverage limit
industry risk
Investing
18. Actions that the government might take that would reduce the value of an investment
annual fee
debt
variable expenses
political risk
19. Investing with a series of regular payments; usually associated with life insurance companies
municipal bonds
industry risk
annuities
full-service broker
20. Amount of money that is set aside for future purchases
municipal bonds
phishing
inflation
savings
21. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
company risk
dollar cost average
risk taker
dividend
22. Reducing investment risk by putting money in several different types of investments.
variable expenses
diversification
penny stocks
coverage limit
23. US treasury security that matures in 30 years
stocks
US Treasury Bonds
social security tax
chapter 7
24. Things that add comfort and pleasure to your life but you can live without if you need to.
pay yourself first - P.Y.F.
futures
wants
coverage limit
25. Investors who take to take chances
interest
delayed gratification
risk taker
savings account
26. US treasury security that matures in 2 & 5 & or 10 years
ATM - Automatic Teller Machine
US Treasury Notes
inflation
chapter 7
27. A bank account against which the depositor can draw checks payable on demand.
stock market
checking account
well-known financial newspapers
grace period
28. Maximum amount of credit a lender will extend to a customer.
portfolio
cash flow
real estate
credit limit
29. The willingness to give up something you want now in return for something better in the future.
strategic investing
risk management
values
delayed gratification
30. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
Series EE Savings Bond
rate of return
principal
31. The entire amount of money you owe to lenders
phishing
savings
debt
short term goal
32. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
interest
risk taker
capital loss
annuities
33. Brokers who provided little or no information to clients
well-known financial newspapers
discount brokers
interest
over-the-limit fee
34. Smaller decisions that can result from a major decision.
satellite decisions
share account
speculative investments
well-known discount brokers
35. Bold and high-risk investments
maturity date
speculative investments
industry risk
credit union
36. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
spending plan
cash flow
interest-rate risk
deductible
37. Debt obligations of corporations
non-market risk
Investing
corporate bonds
diversification
38. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
risk management
delayed gratification
credit union
stock
39. Conservative investing; used when you have 'excess' savings
credit union
satellite decisions
initial investing
principal
40. The portion of the profits paid to the shareholders of a company.
credit limit
Investing
credit history
dividend
41. Debt obligations of corporations
periodic or occasional expenses
initial investing
corporate bonds
Personal Identification Number - PIN
42. Actions that the government might take that would reduce the value of an investment
bank
stock market
rate of return
political risk
43. Smaller decisions that can result from a major decision.
risk taker
credit
mutual funds
satellite decisions
44. Pooling of money from many investors to buy a large & diverse selection of securities
penny stocks
mutual funds
investing risk
corporate bonds
45. The value of What is given up when you choose one option over another.
time value of money
phishing
opportunity cost
systematic investing
46. The process of dealing with the chance of a potential personal or financial loss.
ATM - Automatic Teller Machine
grace period
diversification
risk management
47. Losses in an investment as a result of the business cycle
universal default
US Treasury Notes
market risk
share account
48. Pooling of money from many investors to buy a large & diverse selection of securities
interest
industry risk
mutual funds
delayed gratification
49. A term that describes investments on which earnings are not taxed until retirement
tax deferred
bankruptcy
futures
stocks
50. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
time value of money
deductible
risk taker
market risk