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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. The setting aside of money for future use or other investments
credit report
risk management
pay yourself first - P.Y.F.
opportunity cost
2. Losses in an investment as a result of the business cycle
time value of money
market risk
yield
bond
3. Contacts to buy and sell commodities or stocks for a specific price on a specific date
municipal bonds
futures
industry risk
risk taker
4. Wall Street Journal and Barron's
well-known financial newspapers
risk taker
cash flow
periodic or occasional expenses
5. Losses in an investment as a result of the business cycle
systematic investing
market risk
grace period
spyware
6. Associated with owning stock of only one company
short term goal
satellite decisions
company risk
risk management
7. A payroll deduction collected by employers by law and sent to the state government to support state services.
chapter 7
Investing
annuities
state income tax
8. 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.
opportunity cost
savings account
risk taker
deductible
9. A bank account against which the depositor can draw checks payable on demand.
checking account
discount brokers
spyware
spending plan
10. 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.
budget
political risk
phishing
APR - Average Percentage Rate
11. Collection of investments
coverage limit
risk taker
bankruptcy
portfolio
12. Merrill Lynch & Fidelity Investments & American Express
collectibles
well-know full-service brokers
annual report
well-known financial newspapers
13. Management of investment alternatives to maximize the growth of your portfolio
spyware
initial investing
credit history
strategic investing
14. A technique used for estimating the number of years required to double your money at a given rate
credit score
delayed gratification
Rule of 72
well-know financial magazines
15. Regular and planned investments
dividend
systematic investing
well-known financial newspapers
social security tax
16. The credit union term for a checking account.
universal default
share draft account
market risk
discount brokers
17. 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
risk averse
credit limit
mutual fund
18. 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.
savings account
financial advisers
market risk
social security tax
19. Property consisting of houses and land
Investing
grace period
cash flow
real estate
20. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
put-and-take account
time value of money
strategic investing
debt
21. The willingness to give up something you want now in return for something better in the future.
dollar cost average
Temporary investment
delayed gratification
inflation
22. A technique used for estimating the number of years required to double your money at a given rate
Rule of 72
US Treasury Notes
risk taker
full-service broker
23. Brokers who provide clients with analysis and opinions
capital gain
full-service broker
real estate
Personal Identification Number - PIN
24. A form of bankruptcy that allows you to erase most of your debt.
well-known financial newspapers
chapter 7
chapter 13
Securities and Exchange Commission
25. Associated with owning stock of similar groups of businesses
grace period
industry risk
stocks
state income tax
26. Investment choices that will be held for long periods
capital loss
savings account
permanent investment
credit
27. 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.'
coverage limit
maturity date
debit card
collectibles
28. The entire amount of money you owe to lenders
debt
well-know full-service brokers
diversification
short term goal
29. Movement of money you receive and the money you spend
cash flow
universal default
deductible
permanent investment
30. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
Securities and Exchange Commission
career
phishing
diversification
31. The willingness to give up something you want now in return for something better in the future.
chapter 7
stock market
delayed gratification
full-service broker
32. Fee on credit card for making charges above your credit limit.
over-the-limit fee
capital gain
savings account
capital loss
33. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
credit union
mutual funds
stock market
34. The probability that injury - damage - or loss will occur.
principal
strategic investing
risk
Series I Savings Bond
35. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.
risk
stock
spyware
credit history
36. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.
collectibles
spyware
phishing
investing risk
37. A certificate documenting the shareholder's ownership in the corporation
stock
credit union
interest
bank
38. US treasury security that matures from a few days to one year
annual fee
US Treasury Bills
Rule of 72
share account
39. The portion of the profits paid to the shareholders of a company.
short term goal
interest
dividend
stock market
40. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
annual report
budget
over-the-limit fee
41. The use of long-term savings to earn a financial return
Series I Savings Bond
bond
Investing
maturity date
42. Conservative investing; used when you have 'excess' savings
interest-rate risk
initial investing
grace period
compounding interest rate
43. Bold and high-risk investments
share account
US Treasury Bonds
initial investing
speculative investments
44. Associated with owning stock of only one company
company risk
deductible
Rule of 72
tax deferred
45. Conservative investing; used when you have 'excess' savings
credit report
initial investing
rate of return
satellite decisions
46. The process of dealing with the chance of a potential personal or financial loss.
risk management
corporate bonds
bond
credit
47. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
dollar cost average
opportunity cost
periodic or occasional expenses
well-know financial magazines
48. Summary of a corporation's financial condition
annual report
phishing
share account
corporate bonds
49. Low-priced stocks of small companies that have no track record
permanent investment
dividend
Series I Savings Bond
penny stocks
50. A formal contract to repay borrowed money with interest at fixed intervals
Personal Identification Number - PIN
diversification
Rule of 72
bond