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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. Low-priced stocks of small companies that have no track record
wants
penny stocks
options
Series I Savings Bond
2. Merrill Lynch & Fidelity Investments & American Express
short term goal
well-know full-service brokers
Series EE Savings Bond
put-and-take account
3. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
put-and-take account
budget
diversification
Temporary investment
4. Collection of investments
debt
financial pages
credit report
portfolio
5. Standard and Poor's and Moody's
financial pages
diversification
well-known investor services
investing risk
6. Maximum amount of credit a lender will extend to a customer.
credit limit
inflation
credit score
social security tax
7. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
annual report
variable expenses
capital gain
stock market
8. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
opportunity cost
dollar cost average
credit score
checking account
9. Spreading risk among many types of investments; one way to minimize risk
credit history
diversification
Personal Identification Number - PIN
origination fee
10. A chosen pursuit - profession - or occupation
credit
career
initial investing
investing risk
11. The amount of money someone is willing to loan you.
delayed gratification
principal
portfolio
Personal Identification Number - PIN
12. The amount a corporation pays at a fixed amount when repaying a bond
career
interest
bond
capital loss
13. A unit of ownership in a corporation
mutual fund
chapter 13
tax deferred
stocks
14. Conservative investing; used when you have 'excess' savings
dollar cost average
risk averse
interest-rate risk
initial investing
15. The chance that inflation will rise faster than the rate of return on an investment
Investing
inflation
share account
interest-rate risk
16. 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.
grace period
tax deferred
dividend
APR - Average Percentage Rate
17. Debt obligations of state or local governments
market risk
US Treasury Notes
municipal bonds
political risk
18. An amount that credit card companies can charge for the use of a credit card.
savings
annual fee
municipal bonds
political risk
19. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
compounding interest rate
capital gain
phishing
ATM - Automatic Teller Machine
20. Investing with a series of regular payments; usually associated with life insurance companies
penny stocks
risk taker
annuities
universal default
21. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
spyware
cash flow
risk averse
dollar cost average
22. Contacts to buy and sell commodities or stocks for a specific price on a specific date
bank
Personal Identification Number - PIN
risk averse
futures
23. 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
phishing
credit union
dividend
24. Another term for budget
risk averse
spending plan
tax deferred
career
25. The amount a corporation borrowed in a bond situation
satellite decisions
real estate
political risk
principal
26. US treasury security that matures in 30 years
checking account
US Treasury Bonds
credit
US Treasury Notes
27. Contacts to buy and sell commodities or stocks for a specific price on a specific date
futures
periodic or occasional expenses
discount brokers
market risk
28. Investors who take to take chances
mutual fund
periodic or occasional expenses
risk taker
interest
29. The amount a corporation borrowed in a bond situation
values
career
principal
yield
30. Uncontrollable and unpredictable events that cause an investment to lose value
annual report
non-market risk
Temporary investment
diversification
31. An amount that credit card companies can charge for the use of a credit card.
share draft account
political risk
diversification
annual fee
32. 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.
stock
diversification
spyware
mutual funds
33. Debt obligations of corporations
corporate bonds
interest-rate risk
interest
US Treasury Bonds
34. The place where stocks are bought and sold.
compounding interest rate
spyware
stock market
financial pages
35. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
budget
opportunity cost
risk management
capital loss
36. The unique passcode number you use to get access to your savings and/or checking account
diversification
Personal Identification Number - PIN
bankruptcy
compounding interest rate
37. Business Weekly & Forbes & Money
credit union
well-know financial magazines
budget
career
38. Brokers who provide clients with analysis and opinions
risk taker
rate of return
full-service broker
non-market risk
39. Coins & art & memorabilia or other items that are popular from time to time
opportunity cost
deductible
collectibles
cash flow
40. A clause included in many credit card company agreements that allows a credit card company to increase your interest rate if you make just one late payment.
universal default
variable expenses
well-known financial newspapers
Series EE Savings Bond
41. Actions that the government might take that would reduce the value of an investment
principal
grace period
political risk
social security tax
42. US treasury security that matures from a few days to one year
US Treasury Bills
stocks
diversification
company risk
43. The portion of the profits paid to the shareholders of a company.
dividend
credit union
over-the-limit fee
full-service broker
44. Expenses that aren't paid every month and can be either fixed or variable.
Personal Identification Number - PIN
interest-rate risk
periodic or occasional expenses
short term goal
45. Investors who take to take chances
risk taker
systematic investing
state income tax
APR - Average Percentage Rate
46. US treasury security that matures from a few days to one year
mutual funds
US Treasury Bills
well-known discount brokers
well-know full-service brokers
47. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit
delayed gratification
credit score
Rule of 72
48. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
variable expenses
bank
political risk
principal
49. 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.
phishing
credit limit
spyware
non-market risk
50. 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.
APR - Average Percentage Rate
stocks
inflation
yield