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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. Debt obligations of corporations
interest
financial pages
corporate bonds
market risk
2. The profit from an investment.
systematic investing
capital loss
yield
risk management
3. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
diversification
bond
opportunity cost
time value of money
4. The probability that injury - damage - or loss will occur.
rate of return
risk
universal default
company risk
5. Movement of money you receive and the money you spend
chapter 13
cash flow
well-known discount brokers
yield
6. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
speculative investments
Temporary investment
phishing
cash flow
7. Property consisting of houses and land
credit union
inflation
deductible
real estate
8. Another term for budget
permanent investment
spyware
principal
spending plan
9. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
corporate bonds
credit
credit limit
cash flow
10. Charles Schwab & TD Ameritrade & E*TRADE
time value of money
well-known discount brokers
social security tax
dividend
11. Investment choices that will be held for long periods
financial pages
principal
permanent investment
cash flow
12. Wall Street Journal and Barron's
share draft account
well-known financial newspapers
credit union
savings account
13. Bonds designed for investors wanting to protect again inflation losses
stock
strategic investing
Series I Savings Bond
annual fee
14. The amount a corporation pays at a fixed amount when repaying a bond
debt
time value of money
mutual fund
interest
15. Business Weekly & Forbes & Money
annual report
well-know financial magazines
Securities and Exchange Commission
share account
16. 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.
mutual funds
periodic or occasional expenses
risk averse
spyware
17. The portion of the profits paid to the shareholders of a company.
grace period
permanent investment
options
dividend
18. 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.
inflation
deductible
collectibles
Rule of 72
19. Associated with owning stock of similar groups of businesses
put-and-take account
real estate
industry risk
capital gain
20. Wall Street Journal and Barron's
well-known financial newspapers
systematic investing
chapter 13
risk
21. A spending plan for managing money during a given period of time.
chapter 7
budget
interest-rate risk
coverage limit
22. Companies that provide extensive financial data to clients
spending plan
investor services
US Treasury Bonds
annual fee
23. Newspapers list of securities
company risk
financial pages
variable expenses
spending plan
24. The amount a corporation pays at a fixed amount when repaying a bond
delayed gratification
interest
principal
share draft account
25. Investors who take to take chances
state income tax
portfolio
coverage limit
risk taker
26. Associated with owning stock of similar groups of businesses
credit report
permanent investment
full-service broker
industry risk
27. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
share draft account
wants
origination fee
28. 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.'
spyware
debit card
deductible
pay yourself first - P.Y.F.
29. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
time value of money
real estate
deductible
spending plan
30. A legal process to get out of debt when you can no longer make all your required payments.
credit report
credit limit
credit history
bankruptcy
31. The chance that inflation will rise faster than the rate of return on an investment
well-know full-service brokers
share account
interest-rate risk
dividend
32. Management of investment alternatives to maximize the growth of your portfolio
tax deferred
principal
strategic investing
short term goal
33. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
corporate bonds
annual fee
principal
34. 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.
checking account
well-know financial magazines
budget
social security tax
35. A goal to be achieved within the next three months.
pay yourself first - P.Y.F.
interest
career
short term goal
36. Reducing investment risk by putting money in several different types of investments.
political risk
financial advisers
diversification
speculative investments
37. A summary of a person's borrowing and repayment history.
credit history
interest
risk averse
political risk
38. Debt obligations of corporations
corporate bonds
Series I Savings Bond
pay yourself first - P.Y.F.
credit report
39. US treasury security that matures from a few days to one year
Rule of 72
principal
futures
US Treasury Bills
40. Brokers who provide clients with analysis and opinions
capital gain
full-service broker
periodic or occasional expenses
portfolio
41. A general and progressive increase in prices
tax deferred
rate of return
strategic investing
inflation
42. The belief - qualities - or standards that you consider important or desirable.
short term goal
spyware
put-and-take account
values
43. A formal contract to repay borrowed money with interest at fixed intervals
stocks
bond
US Treasury Bonds
interest-rate risk
44. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
debit card
municipal bonds
real estate
options
45. Investors who are afraid to make investments
municipal bonds
initial investing
savings
risk averse
46. The credit union term for a checking account.
budget
credit limit
share draft account
APR - Average Percentage Rate
47. Smaller decisions that can result from a major decision.
Personal Identification Number - PIN
opportunity cost
satellite decisions
well-known discount brokers
48. The chance that an investment's value will decrease
investing risk
financial advisers
Series I Savings Bond
short term goal
49. A formal contract to repay borrowed money with interest at fixed intervals
Series I Savings Bond
Personal Identification Number - PIN
chapter 13
bond
50. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
coverage limit
credit
annual fee
dollar cost average