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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. A legal process to get out of debt when you can no longer make all your required payments.
non-market risk
futures
credit limit
bankruptcy
2. People trained to give investment advise based on your goals & age & lifestyle & etc
financial advisers
time value of money
credit
US Treasury Bills
3. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
industry risk
share draft account
tax deferred
4. The process of dealing with the chance of a potential personal or financial loss.
political risk
risk management
penny stocks
Temporary investment
5. Investors who are afraid to make investments
credit union
risk averse
collectibles
mutual funds
6. A spending plan for managing money during a given period of time.
origination fee
industry risk
market risk
budget
7. Collection of investments
systematic investing
wants
portfolio
spyware
8. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
credit limit
bank
annuities
9. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
stocks
options
annual report
opportunity cost
10. The amount of money someone is willing to loan you.
principal
capital gain
diversification
dollar cost average
11. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
credit limit
put-and-take account
US Treasury Bills
US Treasury Bonds
12. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
speculative investments
periodic or occasional expenses
grace period
Series EE Savings Bond
13. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
annual report
time value of money
short term goal
satellite decisions
14. Investment choices that will be held for long periods
satellite decisions
capital gain
permanent investment
stocks
15. The place where stocks are bought and sold.
satellite decisions
investor services
career
stock market
16. 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-known investor services
Investing
universal default
mutual funds
17. The portion of the profits paid to the shareholders of a company.
wants
initial investing
capital loss
dividend
18. Actions that the government might take that would reduce the value of an investment
penny stocks
political risk
Series I Savings Bond
over-the-limit fee
19. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
non-market risk
spyware
company risk
20. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
savings
credit report
origination fee
political risk
21. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
real estate
well-know full-service brokers
capital loss
22. Smaller decisions that can result from a major decision.
pay yourself first - P.Y.F.
Series I Savings Bond
universal default
satellite decisions
23. The amount a corporation pays at a fixed amount when repaying a bond
Series EE Savings Bond
well-known financial newspapers
phishing
interest
24. The chance that an investment's value will decrease
risk taker
wants
investing risk
savings
25. US treasury security that matures in 2 & 5 & or 10 years
Securities and Exchange Commission
credit
US Treasury Notes
strategic investing
26. Summary of a corporation's financial condition
Investing
capital loss
industry risk
annual report
27. Expenses that aren't paid every month and can be either fixed or variable.
ATM - Automatic Teller Machine
diversification
debt
periodic or occasional expenses
28. The belief - qualities - or standards that you consider important or desirable.
opportunity cost
opportunity cost
US Treasury Bonds
values
29. Contacts to buy and sell commodities or stocks for a specific price on a specific date
company risk
stocks
systematic investing
futures
30. Property consisting of houses and land
real estate
credit history
time value of money
put-and-take account
31. Amount of money that is set aside for future purchases
savings
stocks
checking account
wants
32. The entire amount of money you owe to lenders
short term goal
US Treasury Bonds
debt
Personal Identification Number - PIN
33. Reducing investment risk by putting money in several different types of investments.
speculative investments
grace period
diversification
phishing
34. The amount a corporation borrowed in a bond situation
principal
real estate
diversification
permanent investment
35. Actions that the government might take that would reduce the value of an investment
corporate bonds
inflation
political risk
Temporary investment
36. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
delayed gratification
phishing
real estate
permanent investment
37. The chance that inflation will rise faster than the rate of return on an investment
Investing
principal
pay yourself first - P.Y.F.
interest-rate risk
38. Bold and high-risk investments
speculative investments
municipal bonds
credit score
full-service broker
39. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
spending plan
pay yourself first - P.Y.F.
chapter 13
mutual funds
40. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
investing risk
phishing
investor services
maturity date
41. Maximum amount of credit a lender will extend to a customer.
Investing
credit limit
Series EE Savings Bond
risk
42. A unit of ownership in a corporation
well-known financial newspapers
options
stocks
US Treasury Bonds
43. A term that describes investments on which earnings are not taxed until retirement
credit report
bond
opportunity cost
tax deferred
44. Charles Schwab & TD Ameritrade & E*TRADE
inflation
well-known discount brokers
options
risk taker
45. Brokers who provide clients with analysis and opinions
US Treasury Notes
real estate
full-service broker
pay yourself first - P.Y.F.
46. The process of dealing with the chance of a potential personal or financial loss.
risk management
systematic investing
credit score
risk averse
47. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
chapter 7
well-know full-service brokers
Series EE Savings Bond
capital gain
48. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
stock
Investing
ATM - Automatic Teller Machine
Temporary investment
49. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
universal default
bankruptcy
over-the-limit fee
origination fee
50. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
portfolio
debit card
Temporary investment