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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 lower selling price and a higher purchase price resulting in a financial loss for the seller
budget
stocks
capital loss
grace period
2. The profit from an investment.
yield
corporate bonds
bank
real estate
3. Uncontrollable and unpredictable events that cause an investment to lose value
chapter 7
non-market risk
Rule of 72
speculative investments
4. The date on which the borrowed money must be repaid
periodic or occasional expenses
spending plan
maturity date
values
5. Brokers who provided little or no information to clients
compounding interest rate
risk averse
discount brokers
spending plan
6. A term that describes investments on which earnings are not taxed until retirement
Securities and Exchange Commission
well-known investor services
cash flow
tax deferred
7. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
ATM - Automatic Teller Machine
origination fee
corporate bonds
put-and-take account
8. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
diversification
annual fee
Rule of 72
dollar cost average
9. A spending plan for managing money during a given period of time.
futures
pay yourself first - P.Y.F.
budget
stocks
10. The maximum amount an insurance company will pay if you file a claim.
phishing
satellite decisions
options
coverage limit
11. Low-priced stocks of small companies that have no track record
penny stocks
savings account
time value of money
company risk
12. The amount of money someone is willing to loan you.
share account
principal
wants
Rule of 72
13. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
share account
state income tax
options
14. Fee on credit card for making charges above your credit limit.
speculative investments
coverage limit
over-the-limit fee
put-and-take account
15. 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
satellite decisions
debit card
coverage limit
16. The willingness to give up something you want now in return for something better in the future.
collectibles
diversification
chapter 13
delayed gratification
17. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
interest-rate risk
satellite decisions
credit history
18. A technique used for estimating the number of years required to double your money at a given rate
Investing
state income tax
Series I Savings Bond
Rule of 72
19. Bold and high-risk investments
Investing
mutual funds
speculative investments
phishing
20. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
stocks
well-know financial magazines
bank
credit score
21. A technique used for estimating the number of years required to double your money at a given rate
credit score
Rule of 72
credit history
credit history
22. Associated with owning stock of similar groups of businesses
industry risk
principal
maturity date
budget
23. The process of dealing with the chance of a potential personal or financial loss.
investor services
Temporary investment
risk management
state income tax
24. The maximum amount an insurance company will pay if you file a claim.
well-know full-service brokers
well-know full-service brokers
investing risk
coverage limit
25. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
universal default
portfolio
credit union
bankruptcy
26. US treasury security that matures in 30 years
short term goal
collectibles
US Treasury Bonds
stock
27. Investors who take to take chances
financial pages
risk taker
mutual fund
opportunity cost
28. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
well-known discount brokers
wants
budget
credit score
29. Newspapers list of securities
tax deferred
systematic investing
financial pages
deductible
30. The portion of the profits paid to the shareholders of a company.
interest-rate risk
strategic investing
dividend
annual fee
31. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
municipal bonds
debt
well-know financial magazines
32. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
Personal Identification Number - PIN
financial pages
career
phishing
33. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
pay yourself first - P.Y.F.
credit
credit report
Rule of 72
34. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
cash flow
values
capital gain
cash flow
35. A detailed record of your personal credit and financial transactions.
credit report
futures
well-known discount brokers
market risk
36. Actions that the government might take that would reduce the value of an investment
budget
origination fee
risk management
political risk
37. 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.'
spyware
strategic investing
risk averse
debit card
38. A form of bankruptcy that allows you to erase most of your debt.
savings account
chapter 7
speculative investments
investor services
39. A goal to be achieved within the next three months.
investing risk
risk taker
short term goal
US Treasury Notes
40. The place where stocks are bought and sold.
stock market
variable expenses
industry risk
mutual fund
41. A government sector that requires all public corporations to make annual reports available to their stockholders
deductible
Securities and Exchange Commission
over-the-limit fee
corporate bonds
42. Expenses that are not fixed.
political risk
credit report
variable expenses
strategic investing
43. The setting aside of money for future use or other investments
capital gain
periodic or occasional expenses
time value of money
pay yourself first - P.Y.F.
44. Companies that provide extensive financial data to clients
political risk
share account
investor services
periodic or occasional expenses
45. A summary of a person's borrowing and repayment history.
capital loss
risk management
credit history
collectibles
46. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
debt
credit limit
short term goal
47. The value of What is given up when you choose one option over another.
spending plan
opportunity cost
US Treasury Notes
origination fee
48. Conservative investing; used when you have 'excess' savings
chapter 7
annual report
rate of return
initial investing
49. Reducing investment risk by putting money in several different types of investments.
stock
diversification
well-known financial newspapers
maturity date
50. 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.
principal
risk taker
social security tax
grace period