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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 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.
risk taker
capital gain
social security tax
risk taker
2. 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
maturity date
real estate
share account
3. The use of long-term savings to earn a financial return
budget
spending plan
Investing
well-known investor services
4. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
share account
dollar cost average
origination fee
5. Collection of investments
Temporary investment
portfolio
put-and-take account
principal
6. A goal to be achieved within the next three months.
speculative investments
US Treasury Bonds
Rule of 72
short term goal
7. The place where stocks are bought and sold.
chapter 13
debt
risk averse
stock market
8. A legal process to get out of debt when you can no longer make all your required payments.
bankruptcy
dollar cost average
periodic or occasional expenses
yield
9. Movement of money you receive and the money you spend
cash flow
interest-rate risk
well-known financial newspapers
wants
10. Conservative investing; used when you have 'excess' savings
initial investing
industry risk
credit score
collectibles
11. Summary of a corporation's financial condition
ATM - Automatic Teller Machine
options
annual report
satellite decisions
12. The value of What is given up when you choose one option over another.
industry risk
opportunity cost
career
systematic investing
13. Merrill Lynch & Fidelity Investments & American Express
deductible
well-know full-service brokers
mutual fund
spyware
14. Debt obligations of corporations
time value of money
corporate bonds
stocks
satellite decisions
15. Debt obligations of corporations
corporate bonds
Rule of 72
collectibles
US Treasury Notes
16. Another term for budget
discount brokers
futures
spending plan
credit history
17. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
phishing
initial investing
stock market
capital loss
18. Expenses that are not fixed.
collectibles
variable expenses
bond
capital gain
19. An amount that credit card companies can charge for the use of a credit card.
annual fee
APR - Average Percentage Rate
chapter 13
savings
20. Investing with a series of regular payments; usually associated with life insurance companies
pay yourself first - P.Y.F.
municipal bonds
stock
annuities
21. A spending plan for managing money during a given period of time.
annuities
budget
ATM - Automatic Teller Machine
bond
22. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
interest
credit
stock
corporate bonds
23. Maximum amount of credit a lender will extend to a customer.
cash flow
credit limit
grace period
yield
24. A formal contract to repay borrowed money with interest at fixed intervals
wants
well-know full-service brokers
savings
bond
25. US treasury security that matures in 2 & 5 & or 10 years
mutual fund
US Treasury Notes
wants
pay yourself first - P.Y.F.
26. Brokers who provided little or no information to clients
discount brokers
penny stocks
delayed gratification
yield
27. Wall Street Journal and Barron's
interest-rate risk
spending plan
futures
well-known financial newspapers
28. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
US Treasury Notes
pay yourself first - P.Y.F.
deductible
financial pages
29. Management of investment alternatives to maximize the growth of your portfolio
opportunity cost
credit
strategic investing
bank
30. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
systematic investing
discount brokers
industry risk
time value of money
31. A term that describes investments on which earnings are not taxed until retirement
tax deferred
spyware
well-know full-service brokers
rate of return
32. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
well-known discount brokers
company risk
origination fee
33. Brokers who provided little or no information to clients
discount brokers
wants
risk
company risk
34. 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.
checking account
permanent investment
universal default
mutual fund
35. The entire amount of money you owe to lenders
pay yourself first - P.Y.F.
systematic investing
debt
annual fee
36. The setting aside of money for future use or other investments
real estate
annual fee
options
pay yourself first - P.Y.F.
37. The amount of money someone is willing to loan you.
yield
short term goal
coverage limit
principal
38. The amount a corporation borrowed in a bond situation
principal
cash flow
well-known discount brokers
well-know full-service brokers
39. Uncontrollable and unpredictable events that cause an investment to lose value
credit union
non-market risk
spending plan
APR - Average Percentage Rate
40. Fee on credit card for making charges above your credit limit.
capital gain
credit limit
over-the-limit fee
credit score
41. A certificate documenting the shareholder's ownership in the corporation
stock
ATM - Automatic Teller Machine
values
interest
42. 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.
chapter 7
spyware
savings account
credit
43. The place where stocks are bought and sold.
maturity date
stock market
non-market risk
full-service broker
44. Investment choices that will be re-evaluated within a year or less
Series I Savings Bond
chapter 7
interest
Temporary investment
45. A formal contract to repay borrowed money with interest at fixed intervals
diversification
bond
Series I Savings Bond
investing risk
46. Brokers who provide clients with analysis and opinions
financial pages
full-service broker
US Treasury Bonds
chapter 13
47. Amount of money that is set aside for future purchases
budget
savings
short term goal
annual report
48. Business Weekly & Forbes & Money
spyware
Series EE Savings Bond
well-know financial magazines
well-known financial newspapers
49. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
time value of money
share draft account
credit score
discount brokers
50. Management of investment alternatives to maximize the growth of your portfolio
over-the-limit fee
strategic investing
speculative investments
values