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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. US treasury security that matures in 2 & 5 & or 10 years
US Treasury Notes
investor services
grace period
spending plan
2. Summary of a corporation's financial condition
annual report
spyware
well-known investor services
penny stocks
3. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
deductible
tax deferred
universal default
cash flow
4. Expenses that are not fixed.
time value of money
discount brokers
diversification
variable expenses
5. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
deductible
variable expenses
market risk
capital loss
6. The chance that an investment's value will decrease
options
delayed gratification
investing risk
ATM - Automatic Teller Machine
7. Another term for budget
options
risk management
spending plan
wants
8. Pooling of money from many investors to buy a large & diverse selection of securities
opportunity cost
market risk
Personal Identification Number - PIN
mutual funds
9. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.
capital loss
mutual fund
delayed gratification
Investing
10. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
annual fee
budget
financial pages
11. 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.
over-the-limit fee
chapter 7
APR - Average Percentage Rate
savings account
12. Another term for budget
spending plan
APR - Average Percentage Rate
well-known investor services
chapter 7
13. 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.
Rule of 72
Series I Savings Bond
variable expenses
chapter 7
14. Property consisting of houses and land
Temporary investment
yield
Investing
real estate
15. US treasury security that matures in 2 & 5 & or 10 years
US Treasury Notes
well-known investor services
well-known financial newspapers
diversification
16. Expenses that aren't paid every month and can be either fixed or variable.
credit
Series EE Savings Bond
APR - Average Percentage Rate
periodic or occasional expenses
17. A chosen pursuit - profession - or occupation
career
pay yourself first - P.Y.F.
pay yourself first - P.Y.F.
credit union
18. A term that describes investments on which earnings are not taxed until retirement
origination fee
bond
over-the-limit fee
tax deferred
19. A payroll deduction collected by employers by law and sent to the state government to support state services.
speculative investments
state income tax
bond
chapter 13
20. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
wants
financial advisers
bankruptcy
21. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
chapter 13
time value of money
mutual funds
well-know full-service brokers
22. Associated with owning stock of similar groups of businesses
capital loss
annual report
variable expenses
industry risk
23. US treasury security that matures in 30 years
inflation
delayed gratification
risk taker
US Treasury Bonds
24. Companies that provide extensive financial data to clients
well-known discount brokers
investor services
annuities
pay yourself first - P.Y.F.
25. Uncontrollable and unpredictable events that cause an investment to lose value
periodic or occasional expenses
futures
non-market risk
well-know full-service brokers
26. The credit union term for a checking account.
political risk
share draft account
stocks
well-know full-service brokers
27. A chosen pursuit - profession - or occupation
credit
career
capital gain
universal default
28. The date on which the borrowed money must be repaid
interest
Securities and Exchange Commission
maturity date
permanent investment
29. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
pay yourself first - P.Y.F.
deductible
financial advisers
career
30. A bank account against which the depositor can draw checks payable on demand.
checking account
risk averse
delayed gratification
dividend
31. Contacts to buy and sell commodities or stocks for a specific price on a specific date
phishing
futures
credit limit
non-market risk
32. Pooling of money from many investors to buy a large & diverse selection of securities
bank
mutual funds
well-know financial magazines
career
33. 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.
savings account
mutual fund
universal default
credit score
34. Merrill Lynch & Fidelity Investments & American Express
financial pages
Series EE Savings Bond
well-know full-service brokers
financial advisers
35. Investment choices that will be held for long periods
capital gain
permanent investment
grace period
full-service broker
36. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
options
stock market
credit
risk averse
37. Maximum amount of credit a lender will extend to a customer.
credit limit
dividend
Rule of 72
chapter 7
38. A bank account against which the depositor can draw checks payable on demand.
Rule of 72
checking account
budget
options
39. Debt obligations of corporations
corporate bonds
ATM - Automatic Teller Machine
municipal bonds
capital gain
40. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
tax deferred
real estate
annuities
41. Smaller decisions that can result from a major decision.
strategic investing
Series I Savings Bond
variable expenses
satellite decisions
42. A form of bankruptcy that allows you to erase most of your debt.
bankruptcy
well-know full-service brokers
chapter 7
US Treasury Notes
43. Standard and Poor's and Moody's
initial investing
maturity date
well-known investor services
origination fee
44. Amount of money that is set aside for future purchases
industry risk
universal default
savings
full-service broker
45. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
US Treasury Notes
short term goal
Rule of 72
ATM - Automatic Teller Machine
46. The probability that injury - damage - or loss will occur.
penny stocks
well-know financial magazines
risk management
risk
47. A formal contract to repay borrowed money with interest at fixed intervals
penny stocks
chapter 13
delayed gratification
bond
48. The increase or decrease in the original purchase price of an investment over a period of time.
options
annual fee
inflation
rate of return
49. Investors who take to take chances
political risk
risk taker
cash flow
well-known financial newspapers
50. A technique used for estimating the number of years required to double your money at a given rate
Personal Identification Number - PIN
collectibles
Rule of 72
budget