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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
savings account
credit report
savings
US Treasury Notes
2. 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.
full-service broker
state income tax
mutual fund
origination fee
3. The portion of the profits paid to the shareholders of a company.
well-know full-service brokers
dividend
variable expenses
share draft account
4. The chance that an investment's value will decrease
investing risk
systematic investing
financial advisers
Investing
5. Contacts to buy and sell commodities or stocks for a specific price on a specific date
phishing
futures
cash flow
rate of return
6. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
spending plan
Series EE Savings Bond
mutual funds
put-and-take account
7. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
share draft account
bank
inflation
chapter 13
8. Regular and planned investments
maturity date
mutual fund
principal
systematic investing
9. Smaller decisions that can result from a major decision.
debt
universal default
satellite decisions
budget
10. The profit from an investment.
wants
yield
chapter 7
Temporary investment
11. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
US Treasury Notes
capital gain
political risk
mutual fund
12. Bold and high-risk investments
interest-rate risk
speculative investments
compounding interest rate
risk averse
13. Bold and high-risk investments
dividend
collectibles
speculative investments
corporate bonds
14. Expenses that aren't paid every month and can be either fixed or variable.
mutual funds
periodic or occasional expenses
risk management
annual report
15. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
risk
spending plan
capital gain
phishing
16. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
yield
stocks
dollar cost average
spyware
17. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
Rule of 72
diversification
universal default
18. A legal process to get out of debt when you can no longer make all your required payments.
industry risk
time value of money
savings
bankruptcy
19. The entire amount of money you owe to lenders
Rule of 72
futures
debt
Rule of 72
20. Another term for budget
interest-rate risk
opportunity cost
spending plan
corporate bonds
21. 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.
savings account
well-known financial newspapers
Rule of 72
US Treasury Notes
22. Expenses that are not fixed.
variable expenses
Temporary investment
diversification
bond
23. The credit union term for a checking account.
short term goal
share draft account
credit limit
cash flow
24. Collection of investments
chapter 13
phishing
bank
portfolio
25. Fee on credit card for making charges above your credit limit.
over-the-limit fee
credit history
variable expenses
delayed gratification
26. A bank account against which the depositor can draw checks payable on demand.
checking account
stock market
diversification
futures
27. Maximum amount of credit a lender will extend to a customer.
risk taker
credit
social security tax
credit limit
28. Summary of a corporation's financial condition
portfolio
annual report
well-known investor services
spyware
29. Debt obligations of corporations
delayed gratification
bank
corporate bonds
Temporary investment
30. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
periodic or occasional expenses
corporate bonds
time value of money
31. The portion of the profits paid to the shareholders of a company.
bank
US Treasury Bonds
time value of money
dividend
32. The amount a corporation borrowed in a bond situation
principal
compounding interest rate
credit history
US Treasury Bills
33. Investors who are afraid to make investments
annual report
risk averse
financial pages
ATM - Automatic Teller Machine
34. Standard and Poor's and Moody's
compounding interest rate
ATM - Automatic Teller Machine
well-known investor services
stock
35. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
spending plan
state income tax
Series EE Savings Bond
futures
36. Companies that provide extensive financial data to clients
social security tax
annuities
investor services
credit score
37. A spending plan for managing money during a given period of time.
budget
Rule of 72
career
corporate bonds
38. The credit union term for a savings account.
Investing
well-know full-service brokers
share account
annual report
39. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
systematic investing
financial pages
cash flow
40. Associated with owning stock of only one company
wants
Personal Identification Number - PIN
company risk
chapter 13
41. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
penny stocks
well-known financial newspapers
well-known financial newspapers
42. A term that describes investments on which earnings are not taxed until retirement
tax deferred
opportunity cost
savings
universal default
43. The place where stocks are bought and sold.
stock market
short term goal
Securities and Exchange Commission
futures
44. Uncontrollable and unpredictable events that cause an investment to lose value
speculative investments
career
non-market risk
maturity date
45. Property consisting of houses and land
real estate
ATM - Automatic Teller Machine
Securities and Exchange Commission
cash flow
46. The date on which the borrowed money must be repaid
maturity date
mutual fund
variable expenses
US Treasury Bonds
47. Debt obligations of state or local governments
annual fee
municipal bonds
annual fee
company risk
48. A detailed record of your personal credit and financial transactions.
mutual fund
spending plan
credit report
stock
49. Earning interest on interest.
APR - Average Percentage Rate
universal default
compounding interest rate
speculative investments
50. A formal contract to repay borrowed money with interest at fixed intervals
credit union
periodic or occasional expenses
capital loss
bond