SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Bonds designed for investors wanting to protect again inflation losses
well-know full-service brokers
grace period
Series I Savings Bond
debt
2. Pooling of money from many investors to buy a large & diverse selection of securities
mutual funds
US Treasury Bills
savings account
full-service broker
3. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
well-known financial newspapers
risk averse
savings account
chapter 13
4. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
grace period
maturity date
put-and-take account
strategic investing
5. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
diversification
options
mutual fund
US Treasury Bills
6. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
permanent investment
capital loss
origination fee
share draft account
7. Brokers who provide clients with analysis and opinions
full-service broker
Series I Savings Bond
futures
savings account
8. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
portfolio
universal default
pay yourself first - P.Y.F.
9. The willingness to give up something you want now in return for something better in the future.
delayed gratification
dividend
grace period
market risk
10. Coins & art & memorabilia or other items that are popular from time to time
penny stocks
collectibles
dollar cost average
dividend
11. Wall Street Journal and Barron's
corporate bonds
interest
well-known financial newspapers
put-and-take account
12. Amount of money that is set aside for future purchases
annuities
savings
full-service broker
share account
13. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
yield
savings account
Rule of 72
14. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.
savings account
well-known financial newspapers
real estate
universal default
15. The credit union term for a checking account.
share draft account
short term goal
maturity date
share account
16. Smaller decisions that can result from a major decision.
satellite decisions
Securities and Exchange Commission
delayed gratification
Series EE Savings Bond
17. A bank account against which the depositor can draw checks payable on demand.
initial investing
checking account
credit history
risk taker
18. Losses in an investment as a result of the business cycle
credit
bond
market risk
interest
19. The date on which the borrowed money must be repaid
market risk
initial investing
Personal Identification Number - PIN
maturity date
20. US treasury security that matures in 2 & 5 & or 10 years
credit
US Treasury Notes
opportunity cost
deductible
21. Debt obligations of corporations
futures
political risk
corporate bonds
over-the-limit fee
22. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
bankruptcy
origination fee
futures
speculative investments
23. Investing with a series of regular payments; usually associated with life insurance companies
mutual funds
initial investing
annuities
interest-rate risk
24. 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.
stocks
credit report
financial advisers
universal default
25. The amount a corporation pays at a fixed amount when repaying a bond
credit score
interest
mutual funds
wants
26. Actions that the government might take that would reduce the value of an investment
well-know full-service brokers
savings
political risk
investor services
27. Merrill Lynch & Fidelity Investments & American Express
compounding interest rate
investor services
well-know full-service brokers
delayed gratification
28. Brokers who provided little or no information to clients
credit
bank
discount brokers
annuities
29. Newspapers list of securities
financial pages
maturity date
risk
diversification
30. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
permanent investment
dollar cost average
speculative investments
full-service broker
31. The credit union term for a savings account.
full-service broker
opportunity cost
share account
political risk
32. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
rate of return
US Treasury Notes
credit
strategic investing
33. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
tax deferred
share account
over-the-limit fee
34. A chosen pursuit - profession - or occupation
career
US Treasury Notes
Rule of 72
debit card
35. Losses in an investment as a result of the business cycle
market risk
diversification
Rule of 72
state income tax
36. Bold and high-risk investments
universal default
speculative investments
cash flow
ATM - Automatic Teller Machine
37. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
annuities
US Treasury Notes
credit report
deductible
38. An amount that credit card companies can charge for the use of a credit card.
APR - Average Percentage Rate
annual fee
speculative investments
Rule of 72
39. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
debt
capital loss
Temporary investment
phishing
40. 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
company risk
diversification
political risk
41. Charles Schwab & TD Ameritrade & E*TRADE
savings
principal
annual fee
well-known discount brokers
42. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
tax deferred
capital loss
cash flow
43. A detailed record of your personal credit and financial transactions.
wants
Rule of 72
credit report
universal default
44. Movement of money you receive and the money you spend
risk management
short term goal
credit history
cash flow
45. The use of long-term savings to earn a financial return
mutual funds
career
Investing
investing risk
46. The setting aside of money for future use or other investments
credit union
pay yourself first - P.Y.F.
industry risk
mutual fund
47. The probability that injury - damage - or loss will occur.
US Treasury Notes
principal
risk
permanent investment
48. A spending plan for managing money during a given period of time.
risk taker
budget
diversification
well-known investor services
49. The place where stocks are bought and sold.
collectibles
US Treasury Bonds
investing risk
stock market
50. Investing with a series of regular payments; usually associated with life insurance companies
industry risk
well-know full-service brokers
annuities
futures