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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.
speculative investments
mutual funds
credit union
credit
2. The setting aside of money for future use or other investments
corporate bonds
opportunity cost
pay yourself first - P.Y.F.
capital loss
3. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
full-service broker
investing risk
chapter 7
credit union
4. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
US Treasury Bills
Series I Savings Bond
risk averse
phishing
5. Conservative investing; used when you have 'excess' savings
initial investing
values
municipal bonds
yield
6. Merrill Lynch & Fidelity Investments & American Express
universal default
coverage limit
short term goal
well-know full-service brokers
7. Amount of money that is set aside for future purchases
savings
credit report
diversification
spending plan
8. A summary of a person's borrowing and repayment history.
diversification
futures
over-the-limit fee
credit history
9. The maximum amount an insurance company will pay if you file a claim.
coverage limit
chapter 13
career
career
10. Low-priced stocks of small companies that have no track record
penny stocks
phishing
principal
credit
11. Spreading risk among many types of investments; one way to minimize risk
systematic investing
credit score
company risk
diversification
12. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
futures
credit score
chapter 7
13. The chance that inflation will rise faster than the rate of return on an investment
well-known discount brokers
interest-rate risk
credit union
spyware
14. A bank account against which the depositor can draw checks payable on demand.
risk
dollar cost average
checking account
bond
15. The portion of the profits paid to the shareholders of a company.
dividend
put-and-take account
spyware
options
16. A technique used for estimating the number of years required to double your money at a given rate
Rule of 72
diversification
portfolio
investing risk
17. A spending plan for managing money during a given period of time.
risk
credit union
budget
US Treasury Bonds
18. The chance that an investment's value will decrease
investing risk
opportunity cost
speculative investments
social security tax
19. Things that add comfort and pleasure to your life but you can live without if you need to.
collectibles
principal
investing risk
wants
20. A government sector that requires all public corporations to make annual reports available to their stockholders
Rule of 72
opportunity cost
US Treasury Bills
Securities and Exchange Commission
21. Business Weekly & Forbes & Money
full-service broker
compounding interest rate
well-know financial magazines
short term goal
22. 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.
initial investing
penny stocks
US Treasury Bonds
savings account
23. Brokers who provided little or no information to clients
satellite decisions
strategic investing
principal
discount brokers
24. US treasury security that matures from a few days to one year
credit limit
US Treasury Bills
risk averse
chapter 7
25. 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
penny stocks
well-know financial magazines
US Treasury Bonds
26. Debt obligations of state or local governments
municipal bonds
variable expenses
ATM - Automatic Teller Machine
ATM - Automatic Teller Machine
27. A formal contract to repay borrowed money with interest at fixed intervals
bond
stocks
short term goal
coverage limit
28. Brokers who provided little or no information to clients
grace period
diversification
bank
discount brokers
29. A summary of a person's borrowing and repayment history.
credit history
corporate bonds
career
capital loss
30. US treasury security that matures from a few days to one year
stock
US Treasury Bills
well-known financial newspapers
savings
31. Fee on credit card for making charges above your credit limit.
discount brokers
over-the-limit fee
annuities
penny stocks
32. The amount a corporation borrowed in a bond situation
real estate
APR - Average Percentage Rate
state income tax
principal
33. A spending plan for managing money during a given period of time.
checking account
budget
Rule of 72
credit score
34. A legal process to get out of debt when you can no longer make all your required payments.
bankruptcy
well-know full-service brokers
Temporary investment
corporate bonds
35. The value of What is given up when you choose one option over another.
opportunity cost
capital loss
credit history
annual report
36. The setting aside of money for future use or other investments
bank
pay yourself first - P.Y.F.
Rule of 72
grace period
37. Expenses that aren't paid every month and can be either fixed or variable.
share account
periodic or occasional expenses
strategic investing
interest
38. A certificate documenting the shareholder's ownership in the corporation
Series I Savings Bond
stock
put-and-take account
satellite decisions
39. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
financial advisers
over-the-limit fee
US Treasury Bonds
ATM - Automatic Teller Machine
40. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
Securities and Exchange Commission
state income tax
chapter 13
cash flow
41. The process of dealing with the chance of a potential personal or financial loss.
wants
social security tax
US Treasury Notes
risk management
42. Associated with owning stock of similar groups of businesses
credit
industry risk
credit report
bankruptcy
43. The profit from an investment.
investor services
risk taker
yield
spyware
44. The date on which the borrowed money must be repaid
spyware
well-known discount brokers
maturity date
debit card
45. A form of bankruptcy that allows you to erase most of your debt.
chapter 7
real estate
social security tax
stock market
46. Maximum amount of credit a lender will extend to a customer.
Rule of 72
risk
periodic or occasional expenses
credit limit
47. The amount of money someone is willing to loan you.
well-know full-service brokers
diversification
credit history
principal
48. The amount of money someone is willing to loan you.
mutual fund
principal
company risk
universal default
49. A goal to be achieved within the next three months.
over-the-limit fee
short term goal
values
inflation
50. Merrill Lynch & Fidelity Investments & American Express
credit history
maturity date
well-know full-service brokers
capital loss