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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 financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
real estate
capital gain
credit union
maturity date
2. Movement of money you receive and the money you spend
cash flow
financial pages
capital gain
ATM - Automatic Teller Machine
3. Coins & art & memorabilia or other items that are popular from time to time
spyware
collectibles
time value of money
annual fee
4. Spreading risk among many types of investments; one way to minimize risk
mutual fund
delayed gratification
options
diversification
5. A summary of a person's borrowing and repayment history.
credit history
stock market
investing risk
dividend
6. Conservative investing; used when you have 'excess' savings
debit card
stock
capital gain
initial investing
7. The portion of the profits paid to the shareholders of a company.
discount brokers
dividend
financial advisers
pay yourself first - P.Y.F.
8. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
US Treasury Bonds
cash flow
mutual fund
9. The process of dealing with the chance of a potential personal or financial loss.
risk taker
risk management
risk taker
grace period
10. The process of dealing with the chance of a potential personal or financial loss.
dollar cost average
social security tax
risk management
annual report
11. US treasury security that matures from a few days to one year
over-the-limit fee
capital gain
US Treasury Bills
political risk
12. 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.
satellite decisions
speculative investments
spyware
inflation
13. Amount of money that is set aside for future purchases
diversification
risk management
permanent investment
savings
14. Collection of investments
portfolio
futures
Securities and Exchange Commission
satellite decisions
15. Another term for budget
interest-rate risk
spending plan
US Treasury Bills
tax deferred
16. 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.
mutual fund
principal
diversification
Temporary investment
17. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
diversification
Series EE Savings Bond
grace period
political risk
18. The amount a corporation pays at a fixed amount when repaying a bond
corporate bonds
credit union
interest
mutual funds
19. A form of bankruptcy that allows you to erase most of your debt.
discount brokers
chapter 7
full-service broker
opportunity cost
20. Spreading risk among many types of investments; one way to minimize risk
well-known investor services
diversification
satellite decisions
capital loss
21. The value of What is given up when you choose one option over another.
opportunity cost
well-known discount brokers
speculative investments
credit
22. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
annual report
spyware
chapter 13
bond
23. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
Personal Identification Number - PIN
capital gain
delayed gratification
periodic or occasional expenses
24. 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
bank
risk averse
tax deferred
25. The chance that an investment's value will decrease
debt
over-the-limit fee
non-market risk
investing risk
26. Newspapers list of securities
risk
tax deferred
financial pages
bank
27. 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.
credit history
maturity date
interest
APR - Average Percentage Rate
28. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
credit union
phishing
Investing
credit score
29. Newspapers list of securities
financial pages
Rule of 72
diversification
investing risk
30. Low-priced stocks of small companies that have no track record
checking account
dollar cost average
penny stocks
Investing
31. Associated with owning stock of only one company
debit card
company risk
bankruptcy
career
32. A general and progressive increase in prices
values
values
inflation
corporate bonds
33. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
industry risk
maturity date
municipal bonds
options
34. 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.
mutual fund
maturity date
US Treasury Bonds
maturity date
35. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
deductible
phishing
annuities
principal
36. Investors who are afraid to make investments
savings
speculative investments
risk averse
savings account
37. Contacts to buy and sell commodities or stocks for a specific price on a specific date
US Treasury Notes
market risk
credit score
futures
38. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
options
annual report
put-and-take account
satellite decisions
39. Summary of a corporation's financial condition
chapter 7
bond
compounding interest rate
annual report
40. A bank account against which the depositor can draw checks payable on demand.
checking account
interest-rate risk
short term goal
social security tax
41. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
well-know financial magazines
rate of return
universal default
dollar cost average
42. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
systematic investing
coverage limit
well-known discount brokers
43. People trained to give investment advise based on your goals & age & lifestyle & etc
financial advisers
annual report
principal
universal default
44. Earning interest on interest.
Series EE Savings Bond
debit card
compounding interest rate
US Treasury Notes
45. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
Series I Savings Bond
diversification
dollar cost average
Investing
46. The increase or decrease in the original purchase price of an investment over a period of time.
bank
dividend
rate of return
annual fee
47. 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.
checking account
spyware
bankruptcy
debt
48. Coins & art & memorabilia or other items that are popular from time to time
put-and-take account
collectibles
capital loss
credit union
49. The amount of money someone is willing to loan you.
principal
chapter 13
credit history
portfolio
50. The chance that an investment's value will decrease
portfolio
chapter 13
investing risk
full-service broker