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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. Things that add comfort and pleasure to your life but you can live without if you need to.
interest-rate risk
delayed gratification
bankruptcy
wants
2. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
capital loss
well-know full-service brokers
share draft account
3. The setting aside of money for future use or other investments
deductible
variable expenses
pay yourself first - P.Y.F.
Rule of 72
4. Investing with a series of regular payments; usually associated with life insurance companies
well-known discount brokers
permanent investment
financial pages
annuities
5. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
interest
speculative investments
spyware
6. A bank account against which the depositor can draw checks payable on demand.
checking account
periodic or occasional expenses
portfolio
share account
7. The date on which the borrowed money must be repaid
financial advisers
maturity date
risk averse
savings
8. The date on which the borrowed money must be repaid
credit history
chapter 13
maturity date
bond
9. The willingness to give up something you want now in return for something better in the future.
delayed gratification
spyware
risk averse
financial pages
10. The place where stocks are bought and sold.
universal default
Rule of 72
stock market
US Treasury Notes
11. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
credit report
savings
US Treasury Bills
phishing
12. 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.
APR - Average Percentage Rate
dollar cost average
political risk
capital gain
13. The belief - qualities - or standards that you consider important or desirable.
values
credit report
Series EE Savings Bond
non-market risk
14. A spending plan for managing money during a given period of time.
diversification
full-service broker
Series I Savings Bond
budget
15. The place where stocks are bought and sold.
dollar cost average
stock market
dollar cost average
values
16. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
US Treasury Bonds
well-known financial newspapers
credit union
financial pages
17. A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest.
chapter 7
Rule of 72
Investing
satellite decisions
18. Brokers who provide clients with analysis and opinions
savings account
dollar cost average
full-service broker
debit card
19. Maximum amount of credit a lender will extend to a customer.
satellite decisions
pay yourself first - P.Y.F.
credit limit
wants
20. A formal contract to repay borrowed money with interest at fixed intervals
risk management
bond
APR - Average Percentage Rate
systematic investing
21. 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.
well-know financial magazines
US Treasury Bonds
universal default
initial investing
22. The profit from an investment.
Temporary investment
collectibles
savings
yield
23. Pooling of money from many investors to buy a large & diverse selection of securities
well-known discount brokers
capital loss
mutual funds
penny stocks
24. A term that describes investments on which earnings are not taxed until retirement
debt
tax deferred
dividend
investing risk
25. Investment choices that will be held for long periods
deductible
permanent investment
interest-rate risk
risk averse
26. Wall Street Journal and Barron's
well-known financial newspapers
variable expenses
well-know full-service brokers
career
27. Investors who take to take chances
deductible
risk taker
credit limit
annual fee
28. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
chapter 13
political risk
credit
29. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
debit card
pay yourself first - P.Y.F.
ATM - Automatic Teller Machine
universal default
30. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
debt
financial pages
bank
permanent investment
31. The amount of money someone is willing to loan you.
penny stocks
maturity date
principal
risk averse
32. An amount that credit card companies can charge for the use of a credit card.
well-known investor services
annual fee
annuities
values
33. Spreading risk among many types of investments; one way to minimize risk
diversification
market risk
bond
risk management
34. The entire amount of money you owe to lenders
debt
career
well-known financial newspapers
budget
35. A goal to be achieved within the next three months.
ATM - Automatic Teller Machine
over-the-limit fee
short term goal
speculative investments
36. The probability that injury - damage - or loss will occur.
risk
annual fee
Series EE Savings Bond
market risk
37. People trained to give investment advise based on your goals & age & lifestyle & etc
opportunity cost
financial advisers
cash flow
bank
38. Brokers who provided little or no information to clients
spending plan
discount brokers
wants
Securities and Exchange Commission
39. Actions that the government might take that would reduce the value of an investment
initial investing
political risk
over-the-limit fee
options
40. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
variable expenses
bond
origination fee
Rule of 72
41. Expenses that are not fixed.
risk
bank
diversification
variable expenses
42. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
credit score
time value of money
pay yourself first - P.Y.F.
risk management
43. Reducing investment risk by putting money in several different types of investments.
market risk
diversification
systematic investing
spyware
44. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
risk taker
credit union
capital gain
Personal Identification Number - PIN
45. 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.'
stocks
credit
debit card
yield
46. Actions that the government might take that would reduce the value of an investment
US Treasury Bonds
inflation
strategic investing
political risk
47. People trained to give investment advise based on your goals & age & lifestyle & etc
financial advisers
chapter 13
US Treasury Bonds
Personal Identification Number - PIN
48. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
APR - Average Percentage Rate
grace period
put-and-take account
social security tax
49. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
credit score
well-known investor services
interest
50. A detailed record of your personal credit and financial transactions.
social security tax
social security tax
savings account
credit report