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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. Business Weekly & Forbes & Money
deductible
well-know financial magazines
investing risk
speculative investments
2. The value of What is given up when you choose one option over another.
APR - Average Percentage Rate
debt
universal default
opportunity cost
3. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
discount brokers
bank
debt
political risk
4. A term that describes investments on which earnings are not taxed until retirement
tax deferred
phishing
capital loss
wants
5. Bold and high-risk investments
US Treasury Notes
debt
APR - Average Percentage Rate
speculative investments
6. 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.
risk taker
discount brokers
delayed gratification
Rule of 72
7. The unique passcode number you use to get access to your savings and/or checking account
political risk
variable expenses
pay yourself first - P.Y.F.
Personal Identification Number - PIN
8. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
bond
mutual fund
portfolio
9. A bank account against which the depositor can draw checks payable on demand.
yield
mutual fund
checking account
stock
10. Investors who are afraid to make investments
risk averse
bankruptcy
periodic or occasional expenses
Rule of 72
11. Wall Street Journal and Barron's
well-known financial newspapers
career
well-known discount brokers
options
12. People trained to give investment advise based on your goals & age & lifestyle & etc
Investing
financial advisers
put-and-take account
wants
13. The chance that an investment's value will decrease
investing risk
real estate
US Treasury Bills
APR - Average Percentage Rate
14. A form of bankruptcy that allows you to erase most of your debt.
Rule of 72
chapter 7
investor services
cash flow
15. A term that describes investments on which earnings are not taxed until retirement
credit report
tax deferred
political risk
career
16. Bold and high-risk investments
state income tax
speculative investments
budget
annual report
17. The portion of the profits paid to the shareholders of a company.
put-and-take account
dividend
collectibles
Investing
18. Things that add comfort and pleasure to your life but you can live without if you need to.
Securities and Exchange Commission
chapter 13
wants
Rule of 72
19. Things that add comfort and pleasure to your life but you can live without if you need to.
wants
real estate
spyware
initial investing
20. Summary of a corporation's financial condition
risk management
speculative investments
annual report
Rule of 72
21. Debt obligations of state or local governments
collectibles
time value of money
pay yourself first - P.Y.F.
municipal bonds
22. 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.
time value of money
mutual fund
put-and-take account
APR - Average Percentage Rate
23. Brokers who provide clients with analysis and opinions
speculative investments
collectibles
full-service broker
well-know full-service brokers
24. Investment choices that will be held for long periods
Series I Savings Bond
permanent investment
Series I Savings Bond
debt
25. Contacts to buy and sell commodities or stocks for a specific price on a specific date
ATM - Automatic Teller Machine
credit score
futures
maturity date
26. US treasury security that matures from a few days to one year
investor services
rate of return
spending plan
US Treasury Bills
27. Collection of investments
inflation
origination fee
social security tax
portfolio
28. The maximum amount an insurance company will pay if you file a claim.
coverage limit
diversification
phishing
origination fee
29. Actions that the government might take that would reduce the value of an investment
origination fee
mutual fund
political risk
well-known discount brokers
30. A goal to be achieved within the next three months.
short term goal
pay yourself first - P.Y.F.
put-and-take account
Personal Identification Number - PIN
31. A detailed record of your personal credit and financial transactions.
credit report
credit
initial investing
municipal bonds
32. A legal process to get out of debt when you can no longer make all your required payments.
financial pages
universal default
bankruptcy
annual report
33. Newspapers list of securities
Temporary investment
collectibles
financial pages
debt
34. The amount a corporation pays at a fixed amount when repaying a bond
interest
pay yourself first - P.Y.F.
US Treasury Bills
portfolio
35. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
interest-rate risk
ATM - Automatic Teller Machine
penny stocks
coverage limit
36. Movement of money you receive and the money you spend
grace period
social security tax
cash flow
company risk
37. The use of long-term savings to earn a financial return
Investing
bankruptcy
delayed gratification
credit history
38. A formal contract to repay borrowed money with interest at fixed intervals
bond
Personal Identification Number - PIN
industry risk
municipal bonds
39. Losses in an investment as a result of the business cycle
company risk
savings account
debt
market risk
40. Conservative investing; used when you have 'excess' savings
share draft account
industry risk
checking account
initial investing
41. Amount of money that is set aside for future purchases
credit history
checking account
savings
share account
42. The amount a corporation pays at a fixed amount when repaying a bond
interest
mutual funds
mutual fund
corporate bonds
43. Earning interest on interest.
US Treasury Notes
compounding interest rate
share account
tax deferred
44. Smaller decisions that can result from a major decision.
credit
yield
satellite decisions
risk taker
45. A spending plan for managing money during a given period of time.
industry risk
full-service broker
budget
periodic or occasional expenses
46. 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
well-know full-service brokers
portfolio
US Treasury Bills
47. Another term for budget
spending plan
risk averse
delayed gratification
Personal Identification Number - PIN
48. Summary of a corporation's financial condition
annual report
APR - Average Percentage Rate
cash flow
diversification
49. The place where stocks are bought and sold.
stock market
savings
annuities
spending plan
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
budget
permanent investment
capital loss