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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. Smaller decisions that can result from a major decision.
rate of return
wants
non-market risk
satellite decisions
2. A legal process to get out of debt when you can no longer make all your required payments.
well-known financial newspapers
interest
bankruptcy
dollar cost average
3. 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.
interest-rate risk
well-known investor services
Series EE Savings Bond
universal default
4. A technique used for estimating the number of years required to double your money at a given rate
Rule of 72
diversification
political risk
values
5. A chosen pursuit - profession - or occupation
industry risk
career
Temporary investment
bank
6. Maximum amount of credit a lender will extend to a customer.
credit limit
opportunity cost
strategic investing
financial advisers
7. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
phishing
pay yourself first - P.Y.F.
credit union
variable expenses
8. US treasury security that matures in 2 & 5 & or 10 years
initial investing
stock market
US Treasury Notes
stock
9. Business Weekly & Forbes & Money
stocks
satellite decisions
well-know financial magazines
Securities and Exchange Commission
10. Earning interest on interest.
compounding interest rate
Investing
values
financial pages
11. Wall Street Journal and Barron's
credit
financial advisers
Rule of 72
well-known financial newspapers
12. Investors who are afraid to make investments
interest-rate risk
well-known financial newspapers
risk averse
share draft account
13. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
US Treasury Notes
deductible
phishing
credit score
14. The place where stocks are bought and sold.
penny stocks
well-known financial newspapers
stock market
bankruptcy
15. The chance that an investment's value will decrease
investing risk
savings account
US Treasury Notes
stock market
16. A bank account against which the depositor can draw checks payable on demand.
Investing
US Treasury Bills
full-service broker
checking account
17. The date on which the borrowed money must be repaid
cash flow
maturity date
annuities
share draft account
18. The willingness to give up something you want now in return for something better in the future.
delayed gratification
political risk
Temporary investment
debit card
19. 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.
risk taker
risk management
Personal Identification Number - PIN
social security tax
20. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
non-market risk
chapter 13
share draft account
compounding interest rate
21. Low-priced stocks of small companies that have no track record
values
penny stocks
industry risk
bank
22. Expenses that are not fixed.
inflation
share draft account
yield
variable expenses
23. An amount that credit card companies can charge for the use of a credit card.
opportunity cost
dividend
annual fee
rate of return
24. The place where stocks are bought and sold.
corporate bonds
stock market
maturity date
US Treasury Notes
25. Actions that the government might take that would reduce the value of an investment
checking account
political risk
Investing
Securities and Exchange Commission
26. A unit of ownership in a corporation
stocks
financial advisers
delayed gratification
credit score
27. The amount a corporation pays at a fixed amount when repaying a bond
collectibles
risk management
interest
savings account
28. 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.
company risk
well-known financial newspapers
mutual fund
variable expenses
29. Earning interest on interest.
Securities and Exchange Commission
credit
opportunity cost
compounding interest rate
30. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
market risk
Series EE Savings Bond
maturity date
credit
31. Fee on credit card for making charges above your credit limit.
credit union
risk taker
annuities
over-the-limit fee
32. Things that add comfort and pleasure to your life but you can live without if you need to.
speculative investments
interest-rate risk
wants
share draft account
33. Bonds designed for investors wanting to protect again inflation losses
capital gain
Series I Savings Bond
US Treasury Bonds
deductible
34. Investors who take to take chances
US Treasury Notes
risk taker
bank
share draft account
35. The entire amount of money you owe to lenders
debt
risk
financial advisers
well-know full-service brokers
36. The amount of money someone is willing to loan you.
checking account
principal
credit score
options
37. A spending plan for managing money during a given period of time.
budget
investor services
career
financial pages
38. A detailed record of your personal credit and financial transactions.
diversification
credit report
satellite decisions
portfolio
39. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
US Treasury Notes
initial investing
budget
grace period
40. The maximum amount an insurance company will pay if you file a claim.
ATM - Automatic Teller Machine
state income tax
cash flow
coverage limit
41. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
spending plan
Rule of 72
ATM - Automatic Teller Machine
risk management
42. The date on which the borrowed money must be repaid
risk
maturity date
savings
investor services
43. Brokers who provide clients with analysis and opinions
risk averse
full-service broker
savings account
credit history
44. Charles Schwab & TD Ameritrade & E*TRADE
wants
deductible
well-known discount brokers
variable expenses
45. The amount a corporation pays at a fixed amount when repaying a bond
interest
credit
penny stocks
debit card
46. A government sector that requires all public corporations to make annual reports available to their stockholders
industry risk
Securities and Exchange Commission
investor services
Rule of 72
47. A detailed record of your personal credit and financial transactions.
risk management
share draft account
APR - Average Percentage Rate
credit report
48. The belief - qualities - or standards that you consider important or desirable.
values
municipal bonds
Rule of 72
principal
49. 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.
bank
APR - Average Percentage Rate
share draft account
social security tax
50. The belief - qualities - or standards that you consider important or desirable.
principal
values
credit history
grace period