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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.
risk
credit union
rate of return
mutual fund
2. Losses in an investment as a result of the business cycle
market risk
over-the-limit fee
Series I Savings Bond
risk
3. Management of investment alternatives to maximize the growth of your portfolio
Investing
full-service broker
strategic investing
mutual funds
4. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
spending plan
Series I Savings Bond
savings account
5. Maximum amount of credit a lender will extend to a customer.
penny stocks
permanent investment
variable expenses
credit limit
6. The setting aside of money for future use or other investments
savings
pay yourself first - P.Y.F.
Series EE Savings Bond
universal default
7. Companies that provide extensive financial data to clients
investor services
mutual fund
universal default
bond
8. A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest.
inflation
origination fee
Rule of 72
pay yourself first - P.Y.F.
9. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
well-know full-service brokers
well-know full-service brokers
risk taker
credit score
10. Associated with owning stock of similar groups of businesses
real estate
discount brokers
industry risk
annuities
11. Debt obligations of state or local governments
stock
full-service broker
municipal bonds
strategic investing
12. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
state income tax
Temporary investment
periodic or occasional expenses
13. A detailed record of your personal credit and financial transactions.
credit report
savings
Rule of 72
spending plan
14. Things that add comfort and pleasure to your life but you can live without if you need to.
strategic investing
investing risk
strategic investing
wants
15. US treasury security that matures in 2 & 5 & or 10 years
credit
career
US Treasury Notes
tax deferred
16. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit
tax deferred
well-know financial magazines
financial advisers
17. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
debit card
annual fee
time value of money
bankruptcy
18. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
chapter 13
credit limit
dollar cost average
grace period
19. Collection of investments
Series EE Savings Bond
portfolio
stock market
share account
20. Reducing investment risk by putting money in several different types of investments.
diversification
US Treasury Bills
state income tax
universal default
21. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
industry risk
penny stocks
grace period
risk taker
22. 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.
Rule of 72
municipal bonds
diversification
spyware
23. The use of long-term savings to earn a financial return
speculative investments
savings account
stocks
Investing
24. The maximum amount an insurance company will pay if you file a claim.
well-known financial newspapers
risk averse
stock market
coverage limit
25. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
short term goal
US Treasury Bills
investing risk
26. Charles Schwab & TD Ameritrade & E*TRADE
Rule of 72
collectibles
bankruptcy
well-known discount brokers
27. Reducing investment risk by putting money in several different types of investments.
credit score
diversification
Rule of 72
Temporary investment
28. The profit from an investment.
yield
Series I Savings Bond
Securities and Exchange Commission
chapter 7
29. The increase or decrease in the original purchase price of an investment over a period of time.
initial investing
ATM - Automatic Teller Machine
share account
rate of return
30. Associated with owning stock of similar groups of businesses
industry risk
opportunity cost
Personal Identification Number - PIN
annual report
31. A goal to be achieved within the next three months.
share account
annual fee
ATM - Automatic Teller Machine
short term goal
32. The maximum amount an insurance company will pay if you file a claim.
coverage limit
career
APR - Average Percentage Rate
US Treasury Bills
33. A payroll deduction collected by employers by law and sent to the state government to support state services.
well-known discount brokers
state income tax
deductible
credit limit
34. The amount a corporation borrowed in a bond situation
principal
real estate
short term goal
time value of money
35. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
Investing
credit score
well-know financial magazines
mutual fund
36. Low-priced stocks of small companies that have no track record
risk taker
financial advisers
penny stocks
Rule of 72
37. 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.
Investing
compounding interest rate
savings account
deductible
38. The credit union term for a savings account.
share account
principal
periodic or occasional expenses
debit card
39. Another term for budget
debt
diversification
permanent investment
spending plan
40. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
dollar cost average
US Treasury Notes
discount brokers
dividend
41. Coins & art & memorabilia or other items that are popular from time to time
universal default
stock
collectibles
bankruptcy
42. A term that describes investments on which earnings are not taxed until retirement
tax deferred
mutual funds
wants
credit history
43. 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.
stock
options
universal default
spyware
44. US treasury security that matures from a few days to one year
US Treasury Bills
risk taker
compounding interest rate
strategic investing
45. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
tax deferred
discount brokers
capital gain
46. The chance that inflation will rise faster than the rate of return on an investment
savings
over-the-limit fee
interest-rate risk
state income tax
47. Smaller decisions that can result from a major decision.
opportunity cost
state income tax
satellite decisions
put-and-take account
48. Actions that the government might take that would reduce the value of an investment
political risk
tax deferred
collectibles
bankruptcy
49. A chosen pursuit - profession - or occupation
career
chapter 7
mutual funds
credit score
50. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
non-market risk
spending plan
credit score
chapter 13