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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 form of bankruptcy that allows you to erase most of your debt.
short term goal
well-known discount brokers
chapter 7
Rule of 72
2. People trained to give investment advise based on your goals & age & lifestyle & etc
wants
chapter 7
budget
financial advisers
3. The chance that inflation will rise faster than the rate of return on an investment
risk averse
dollar cost average
interest-rate risk
credit limit
4. Maximum amount of credit a lender will extend to a customer.
savings
share draft account
credit limit
career
5. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
company risk
Rule of 72
penny stocks
6. Management of investment alternatives to maximize the growth of your portfolio
options
short term goal
periodic or occasional expenses
strategic investing
7. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
satellite decisions
speculative investments
investing risk
8. Another term for budget
put-and-take account
stock market
cash flow
spending plan
9. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
collectibles
APR - Average Percentage Rate
origination fee
bond
10. The maximum amount an insurance company will pay if you file a claim.
Temporary investment
put-and-take account
debt
coverage limit
11. Investors who are afraid to make investments
phishing
stock market
risk averse
US Treasury Notes
12. 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.
mutual fund
financial advisers
well-known financial newspapers
Rule of 72
13. Bold and high-risk investments
penny stocks
speculative investments
market risk
risk averse
14. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
pay yourself first - P.Y.F.
principal
bank
credit
15. Amount of money that is set aside for future purchases
collectibles
risk management
bankruptcy
savings
16. The probability that injury - damage - or loss will occur.
deductible
speculative investments
yield
risk
17. The chance that an investment's value will decrease
annuities
share account
investing risk
values
18. Fee on credit card for making charges above your credit limit.
dividend
Temporary investment
over-the-limit fee
capital gain
19. A general and progressive increase in prices
principal
inflation
dollar cost average
credit limit
20. 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
inflation
share draft account
budget
21. 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.
Securities and Exchange Commission
social security tax
credit report
well-know financial magazines
22. The willingness to give up something you want now in return for something better in the future.
yield
mutual funds
bankruptcy
delayed gratification
23. Management of investment alternatives to maximize the growth of your portfolio
mutual fund
strategic investing
portfolio
social security tax
24. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
spyware
portfolio
collectibles
25. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
principal
rate of return
inflation
chapter 13
26. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'
debit card
satellite decisions
pay yourself first - P.Y.F.
municipal bonds
27. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
origination fee
Rule of 72
stock market
grace period
28. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
Investing
strategic investing
mutual fund
29. The place where stocks are bought and sold.
deductible
stock market
dollar cost average
diversification
30. The probability that injury - damage - or loss will occur.
origination fee
diversification
collectibles
risk
31. The entire amount of money you owe to lenders
credit history
budget
corporate bonds
debt
32. The profit from an investment.
initial investing
principal
yield
share draft account
33. A bank account against which the depositor can draw checks payable on demand.
checking account
short term goal
bank
interest-rate risk
34. Newspapers list of securities
well-known financial newspapers
financial pages
Securities and Exchange Commission
market risk
35. US treasury security that matures from a few days to one year
US Treasury Bills
deductible
well-known financial newspapers
non-market risk
36. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
credit union
debt
Rule of 72
financial advisers
37. Smaller decisions that can result from a major decision.
capital gain
discount brokers
dividend
satellite decisions
38. 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.
discount brokers
savings account
capital loss
mutual fund
39. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
compounding interest rate
dividend
inflation
options
40. Things that add comfort and pleasure to your life but you can live without if you need to.
speculative investments
interest
wants
Series I Savings Bond
41. A certificate documenting the shareholder's ownership in the corporation
stock
bankruptcy
pay yourself first - P.Y.F.
wants
42. Bold and high-risk investments
speculative investments
political risk
US Treasury Bonds
credit union
43. The amount of money someone is willing to loan you.
bond
wants
put-and-take account
principal
44. The credit union term for a checking account.
social security tax
share draft account
discount brokers
stock
45. Associated with owning stock of similar groups of businesses
risk management
credit
industry risk
values
46. Property consisting of houses and land
Rule of 72
well-known investor services
real estate
spending plan
47. A formal contract to repay borrowed money with interest at fixed intervals
bond
dollar cost average
investing risk
share draft account
48. US treasury security that matures in 30 years
US Treasury Bonds
deductible
debt
maturity date
49. US treasury security that matures in 2 & 5 & or 10 years
debt
US Treasury Notes
phishing
investor services
50. Regular and planned investments
savings account
credit union
systematic investing
state income tax