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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. 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.
credit union
over-the-limit fee
savings account
grace period
2. Business Weekly & Forbes & Money
US Treasury Bonds
portfolio
well-know financial magazines
checking account
3. 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.'
annuities
penny stocks
market risk
debit card
4. People trained to give investment advise based on your goals & age & lifestyle & etc
mutual fund
delayed gratification
financial advisers
futures
5. Property consisting of houses and land
portfolio
share account
time value of money
real estate
6. Losses in an investment as a result of the business cycle
mutual funds
diversification
permanent investment
market risk
7. Investment choices that will be held for long periods
interest-rate risk
permanent investment
delayed gratification
capital gain
8. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
short term goal
systematic investing
bankruptcy
9. Brokers who provided little or no information to clients
discount brokers
interest-rate risk
credit limit
career
10. The entire amount of money you owe to lenders
debt
origination fee
US Treasury Notes
Series EE Savings Bond
11. US treasury security that matures in 30 years
US Treasury Bonds
debit card
investing risk
over-the-limit fee
12. Associated with owning stock of only one company
risk management
company risk
bond
futures
13. Maximum amount of credit a lender will extend to a customer.
maturity date
APR - Average Percentage Rate
credit limit
US Treasury Notes
14. A formal contract to repay borrowed money with interest at fixed intervals
share draft account
bond
put-and-take account
annual report
15. A formal contract to repay borrowed money with interest at fixed intervals
wants
bond
credit report
mutual fund
16. The credit union term for a savings account.
budget
political risk
state income tax
share account
17. Property consisting of houses and land
financial advisers
bond
compounding interest rate
real estate
18. Low-priced stocks of small companies that have no track record
penny stocks
strategic investing
share account
compounding interest rate
19. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
initial investing
ATM - Automatic Teller Machine
Rule of 72
discount brokers
20. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
credit report
cash flow
US Treasury Notes
21. Smaller decisions that can result from a major decision.
over-the-limit fee
municipal bonds
satellite decisions
political risk
22. The credit union term for a savings account.
risk taker
share account
periodic or occasional expenses
put-and-take account
23. A term that describes investments on which earnings are not taxed until retirement
debit card
tax deferred
risk averse
grace period
24. The unique passcode number you use to get access to your savings and/or checking account
credit union
budget
values
Personal Identification Number - PIN
25. Standard and Poor's and Moody's
portfolio
diversification
chapter 13
well-known investor services
26. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
non-market risk
maturity date
debit card
capital loss
27. The maximum amount an insurance company will pay if you file a claim.
market risk
share draft account
coverage limit
Temporary investment
28. The amount a corporation pays at a fixed amount when repaying a bond
credit history
interest
portfolio
principal
29. Investment choices that will be held for long periods
debit card
permanent investment
capital gain
chapter 13
30. Contacts to buy and sell commodities or stocks for a specific price on a specific date
mutual funds
corporate bonds
futures
Series I Savings Bond
31. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
spyware
dividend
phishing
permanent investment
32. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
chapter 13
time value of money
systematic investing
US Treasury Bonds
33. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
grace period
share account
investing risk
chapter 13
34. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
well-known investor services
dollar cost average
universal default
corporate bonds
35. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
checking account
maturity date
Series EE Savings Bond
36. Another term for budget
Rule of 72
spending plan
career
company risk
37. Fee on credit card for making charges above your credit limit.
well-know full-service brokers
Personal Identification Number - PIN
options
over-the-limit fee
38. Another term for budget
US Treasury Notes
stock market
investing risk
spending plan
39. 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.
rate of return
company risk
share account
APR - Average Percentage Rate
40. A technique used for estimating the number of years required to double your money at a given rate
share draft account
Rule of 72
stocks
permanent investment
41. US treasury security that matures from a few days to one year
maturity date
portfolio
US Treasury Bills
options
42. Actions that the government might take that would reduce the value of an investment
well-know financial magazines
political risk
well-know full-service brokers
checking account
43. The process of dealing with the chance of a potential personal or financial loss.
investor services
savings
risk management
pay yourself first - P.Y.F.
44. A summary of a person's borrowing and repayment history.
investor services
stocks
credit history
real estate
45. The portion of the profits paid to the shareholders of a company.
mutual fund
US Treasury Notes
dividend
career
46. The increase or decrease in the original purchase price of an investment over a period of time.
interest-rate risk
rate of return
grace period
values
47. Merrill Lynch & Fidelity Investments & American Express
investor services
dividend
well-know full-service brokers
origination fee
48. Spreading risk among many types of investments; one way to minimize risk
APR - Average Percentage Rate
origination fee
diversification
futures
49. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.
social security tax
well-known discount brokers
real estate
credit limit
50. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
satellite decisions
futures
over-the-limit fee