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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. A summary of a person's borrowing and repayment history.
credit history
debt
company risk
capital loss
2. Pooling of money from many investors to buy a large & diverse selection of securities
social security tax
dollar cost average
principal
mutual funds
3. The amount a corporation pays at a fixed amount when repaying a bond
interest
bank
interest-rate risk
time value of money
4. US treasury security that matures in 30 years
budget
US Treasury Bonds
credit score
Rule of 72
5. The profit from an investment.
debit card
debt
yield
bond
6. Brokers who provided little or no information to clients
spyware
discount brokers
spending plan
coverage limit
7. The credit union term for a savings account.
share account
career
bankruptcy
opportunity cost
8. Investors who are afraid to make investments
inflation
permanent investment
cash flow
risk averse
9. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
mutual fund
penny stocks
universal default
phishing
10. Fee on credit card for making charges above your credit limit.
diversification
US Treasury Bonds
interest-rate risk
over-the-limit fee
11. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
phishing
chapter 13
periodic or occasional expenses
strategic investing
12. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
systematic investing
options
credit
investing risk
13. 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.
savings account
put-and-take account
ATM - Automatic Teller Machine
debt
14. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
credit union
municipal bonds
time value of money
financial pages
15. The chance that an investment's value will decrease
credit history
well-know full-service brokers
interest
investing risk
16. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
investor services
tax deferred
opportunity cost
17. 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.
discount brokers
credit score
mutual fund
stocks
18. 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
market risk
grace period
satellite decisions
19. Amount of money that is set aside for future purchases
savings account
savings
tax deferred
Rule of 72
20. The setting aside of money for future use or other investments
opportunity cost
social security tax
pay yourself first - P.Y.F.
US Treasury Notes
21. 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.
career
financial advisers
options
mutual fund
22. The chance that inflation will rise faster than the rate of return on an investment
investor services
pay yourself first - P.Y.F.
interest-rate risk
satellite decisions
23. Business Weekly & Forbes & Money
rate of return
state income tax
well-know financial magazines
universal default
24. Another term for budget
penny stocks
bankruptcy
coverage limit
spending plan
25. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
capital gain
credit limit
Personal Identification Number - PIN
yield
26. The probability that injury - damage - or loss will occur.
credit limit
risk
mutual funds
bankruptcy
27. The chance that an investment's value will decrease
corporate bonds
rate of return
investing risk
initial investing
28. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
share account
budget
stock
bank
29. Business Weekly & Forbes & Money
coverage limit
well-know full-service brokers
chapter 7
well-know financial magazines
30. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
career
mutual funds
dividend
credit score
31. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
capital loss
corporate bonds
chapter 13
compounding interest rate
32. Smaller decisions that can result from a major decision.
satellite decisions
capital gain
US Treasury Bonds
wants
33. Associated with owning stock of only one company
ATM - Automatic Teller Machine
mutual fund
chapter 7
company risk
34. Losses in an investment as a result of the business cycle
initial investing
mutual funds
career
market risk
35. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
diversification
tax deferred
dollar cost average
36. The belief - qualities - or standards that you consider important or desirable.
values
mutual funds
options
annual report
37. A unit of ownership in a corporation
stocks
well-known investor services
risk management
cash flow
38. A form of bankruptcy that allows you to erase most of your debt.
short term goal
savings
penny stocks
chapter 7
39. Charles Schwab & TD Ameritrade & E*TRADE
Rule of 72
principal
well-known discount brokers
non-market risk
40. A goal to be achieved within the next three months.
credit
short term goal
risk
penny stocks
41. Investment choices that will be re-evaluated within a year or less
US Treasury Bonds
Temporary investment
credit union
diversification
42. Companies that provide extensive financial data to clients
investor services
mutual funds
risk averse
initial investing
43. Uncontrollable and unpredictable events that cause an investment to lose value
diversification
chapter 7
non-market risk
well-known investor services
44. 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.
penny stocks
deductible
well-know full-service brokers
APR - Average Percentage Rate
45. A formal contract to repay borrowed money with interest at fixed intervals
periodic or occasional expenses
stock
APR - Average Percentage Rate
bond
46. Bold and high-risk investments
well-known discount brokers
risk management
speculative investments
stocks
47. 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.
variable expenses
social security tax
Rule of 72
risk management
48. Bold and high-risk investments
credit score
speculative investments
career
well-know financial magazines
49. Associated with owning stock of only one company
chapter 13
company risk
compounding interest rate
annual report
50. Investment choices that will be held for long periods
debit card
bankruptcy
real estate
permanent investment