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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 difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
well-know financial magazines
capital gain
principal
put-and-take account
2. The credit union term for a savings account.
dividend
inflation
market risk
share account
3. The increase or decrease in the original purchase price of an investment over a period of time.
periodic or occasional expenses
rate of return
state income tax
coverage limit
4. 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
well-known investor services
well-known investor services
put-and-take account
5. A formal contract to repay borrowed money with interest at fixed intervals
compounding interest rate
bond
APR - Average Percentage Rate
financial advisers
6. Investors who are afraid to make investments
portfolio
risk averse
APR - Average Percentage Rate
dollar cost average
7. Regular and planned investments
systematic investing
spending plan
yield
interest-rate risk
8. A summary of a person's borrowing and repayment history.
credit history
dollar cost average
credit report
full-service broker
9. Debt obligations of state or local governments
systematic investing
periodic or occasional expenses
municipal bonds
risk taker
10. Associated with owning stock of similar groups of businesses
origination fee
pay yourself first - P.Y.F.
industry risk
pay yourself first - P.Y.F.
11. A bank account against which the depositor can draw checks payable on demand.
Investing
checking account
maturity date
municipal bonds
12. Low-priced stocks of small companies that have no track record
bankruptcy
penny stocks
share draft account
delayed gratification
13. 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.
chapter 7
universal default
credit score
wants
14. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
speculative investments
municipal bonds
dollar cost average
Series EE Savings Bond
15. Merrill Lynch & Fidelity Investments & American Express
yield
well-know full-service brokers
diversification
rate of return
16. The profit from an investment.
yield
risk taker
state income tax
risk taker
17. The process of dealing with the chance of a potential personal or financial loss.
annual fee
risk management
maturity date
savings account
18. The willingness to give up something you want now in return for something better in the future.
delayed gratification
strategic investing
well-known financial newspapers
time value of money
19. The maximum amount an insurance company will pay if you file a claim.
coverage limit
over-the-limit fee
company risk
stocks
20. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
rate of return
pay yourself first - P.Y.F.
Rule of 72
ATM - Automatic Teller Machine
21. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
rate of return
risk taker
investor services
22. 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.
Investing
dollar cost average
APR - Average Percentage Rate
full-service broker
23. Associated with owning stock of only one company
well-known financial newspapers
company risk
wants
Series EE Savings Bond
24. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
credit limit
industry risk
chapter 13
dollar cost average
25. Investors who are afraid to make investments
deductible
credit limit
risk averse
share account
26. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
credit history
real estate
bank
municipal bonds
27. Brokers who provide clients with analysis and opinions
annual fee
full-service broker
municipal bonds
spending plan
28. Debt obligations of state or local governments
APR - Average Percentage Rate
municipal bonds
diversification
APR - Average Percentage Rate
29. A detailed record of your personal credit and financial transactions.
corporate bonds
credit report
well-known financial newspapers
rate of return
30. The profit from an investment.
yield
municipal bonds
mutual funds
portfolio
31. Property consisting of houses and land
political risk
diversification
spending plan
real estate
32. Amount of money that is set aside for future purchases
capital gain
corporate bonds
stock market
savings
33. US treasury security that matures in 30 years
municipal bonds
US Treasury Bonds
debit card
Series I Savings Bond
34. Another term for budget
spending plan
chapter 13
share account
social security tax
35. A formal contract to repay borrowed money with interest at fixed intervals
bond
risk taker
wants
US Treasury Bills
36. The use of long-term savings to earn a financial return
short term goal
Investing
futures
origination fee
37. The willingness to give up something you want now in return for something better in the future.
delayed gratification
well-known discount brokers
deductible
credit
38. The amount a corporation borrowed in a bond situation
values
bank
ATM - Automatic Teller Machine
principal
39. Property consisting of houses and land
real estate
futures
values
financial advisers
40. The probability that injury - damage - or loss will occur.
state income tax
risk
state income tax
political risk
41. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
career
financial pages
capital loss
futures
42. The probability that injury - damage - or loss will occur.
mutual fund
risk
savings
cash flow
43. The date on which the borrowed money must be repaid
maturity date
opportunity cost
well-known discount brokers
ATM - Automatic Teller Machine
44. Brokers who provide clients with analysis and opinions
non-market risk
full-service broker
annual report
investor services
45. A general and progressive increase in prices
inflation
credit score
financial advisers
deductible
46. A general and progressive increase in prices
inflation
credit limit
US Treasury Bills
chapter 7
47. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
career
interest
chapter 13
time value of money
48. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
cash flow
Rule of 72
grace period
49. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
stock market
interest-rate risk
share account
deductible
50. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
Rule of 72
share draft account
principal