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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. The probability that injury - damage - or loss will occur.
short term goal
ATM - Automatic Teller Machine
credit union
risk
2. The maximum amount an insurance company will pay if you file a claim.
social security tax
ATM - Automatic Teller Machine
coverage limit
annual report
3. Movement of money you receive and the money you spend
permanent investment
dividend
cash flow
collectibles
4. US treasury security that matures from a few days to one year
US Treasury Bills
full-service broker
stock
stocks
5. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
compounding interest rate
Series EE Savings Bond
capital loss
ATM - Automatic Teller Machine
6. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
market risk
risk averse
municipal bonds
7. The credit union term for a checking account.
risk averse
budget
share draft account
origination fee
8. The process of dealing with the chance of a potential personal or financial loss.
risk management
industry risk
industry risk
pay yourself first - P.Y.F.
9. The value of What is given up when you choose one option over another.
compounding interest rate
collectibles
US Treasury Bills
opportunity cost
10. An amount that credit card companies can charge for the use of a credit card.
savings
annual fee
capital gain
satellite decisions
11. A technique used for estimating the number of years required to double your money at a given rate
tax deferred
Rule of 72
Series EE Savings Bond
coverage limit
12. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
risk management
principal
tax deferred
deductible
13. The amount of money someone is willing to loan you.
chapter 7
Temporary investment
principal
well-known investor services
14. US treasury security that matures in 2 & 5 & or 10 years
inflation
credit report
US Treasury Notes
phishing
15. A technique used for estimating the number of years required to double your money at a given rate
interest
Rule of 72
futures
bank
16. A government sector that requires all public corporations to make annual reports available to their stockholders
US Treasury Notes
yield
Securities and Exchange Commission
annuities
17. Debt obligations of corporations
diversification
stock market
over-the-limit fee
corporate bonds
18. Management of investment alternatives to maximize the growth of your portfolio
chapter 7
strategic investing
risk management
tax deferred
19. Spreading risk among many types of investments; one way to minimize risk
share draft account
dividend
annual fee
diversification
20. A bank account against which the depositor can draw checks payable on demand.
well-known financial newspapers
spyware
bankruptcy
checking account
21. Summary of a corporation's financial condition
Series I Savings Bond
state income tax
annual report
annual fee
22. The unique passcode number you use to get access to your savings and/or checking account
savings
credit
permanent investment
Personal Identification Number - PIN
23. The chance that an investment's value will decrease
principal
mutual fund
investing risk
permanent investment
24. The amount a corporation borrowed in a bond situation
principal
industry risk
US Treasury Bills
wants
25. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
savings account
annual fee
portfolio
credit union
26. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
social security tax
Series EE Savings Bond
systematic investing
US Treasury Bonds
27. Actions that the government might take that would reduce the value of an investment
credit
satellite decisions
credit history
political risk
28. Earning interest on interest.
state income tax
spyware
tax deferred
compounding interest rate
29. Expenses that are not fixed.
variable expenses
US Treasury Bills
risk
annuities
30. Another term for budget
spending plan
bankruptcy
values
Rule of 72
31. Business Weekly & Forbes & Money
well-know financial magazines
cash flow
portfolio
chapter 7
32. Low-priced stocks of small companies that have no track record
US Treasury Notes
annuities
over-the-limit fee
penny stocks
33. Movement of money you receive and the money you spend
cash flow
savings account
industry risk
investing risk
34. A certificate documenting the shareholder's ownership in the corporation
values
Series EE Savings Bond
stock
stock market
35. 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.
credit
universal default
systematic investing
mutual fund
36. A chosen pursuit - profession - or occupation
bank
municipal bonds
career
tax deferred
37. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
satellite decisions
annuities
credit history
origination fee
38. Standard and Poor's and Moody's
well-known discount brokers
collectibles
well-known investor services
savings account
39. A payroll deduction collected by employers by law and sent to the state government to support state services.
risk management
state income tax
futures
diversification
40. A general and progressive increase in prices
delayed gratification
company risk
financial pages
inflation
41. Brokers who provide clients with analysis and opinions
Series EE Savings Bond
full-service broker
well-known discount brokers
real estate
42. Smaller decisions that can result from a major decision.
corporate bonds
well-known financial newspapers
Temporary investment
satellite decisions
43. Debt obligations of state or local governments
municipal bonds
investor services
discount brokers
principal
44. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
bankruptcy
capital loss
phishing
45. Bold and high-risk investments
credit score
chapter 13
Series EE Savings Bond
speculative investments
46. Maximum amount of credit a lender will extend to a customer.
dollar cost average
values
credit limit
debt
47. Bold and high-risk investments
diversification
capital gain
stocks
speculative investments
48. Regular and planned investments
full-service broker
stock market
pay yourself first - P.Y.F.
systematic investing
49. Spreading risk among many types of investments; one way to minimize risk
state income tax
credit score
credit union
diversification
50. US treasury security that matures in 30 years
credit score
debt
Investing
US Treasury Bonds