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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. Coins & art & memorabilia or other items that are popular from time to time
grace period
dollar cost average
time value of money
collectibles
2. A term that describes investments on which earnings are not taxed until retirement
tax deferred
put-and-take account
origination fee
Securities and Exchange Commission
3. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
non-market risk
spyware
APR - Average Percentage Rate
4. A general and progressive increase in prices
origination fee
diversification
inflation
values
5. The credit union term for a savings account.
over-the-limit fee
social security tax
municipal bonds
share account
6. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
credit score
real estate
full-service broker
dividend
7. The entire amount of money you owe to lenders
speculative investments
debt
risk
Investing
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.
opportunity cost
well-known investor services
diversification
Rule of 72
9. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.
credit limit
credit
savings
real estate
10. A legal process to get out of debt when you can no longer make all your required payments.
deductible
bankruptcy
debt
ATM - Automatic Teller Machine
11. The entire amount of money you owe to lenders
corporate bonds
debt
deductible
credit union
12. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
delayed gratification
financial pages
chapter 7
13. Property consisting of houses and land
credit score
bankruptcy
real estate
savings
14. The amount of money someone is willing to loan you.
maturity date
principal
well-known investor services
investing risk
15. Property consisting of houses and land
investing risk
permanent investment
debit card
real estate
16. An amount that credit card companies can charge for the use of a credit card.
inflation
credit history
annual fee
stocks
17. The amount a corporation borrowed in a bond situation
principal
credit report
share account
Securities and Exchange Commission
18. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
career
well-know financial magazines
annuities
19. A government sector that requires all public corporations to make annual reports available to their stockholders
stock
principal
Securities and Exchange Commission
credit
20. A detailed record of your personal credit and financial transactions.
Rule of 72
credit report
savings account
US Treasury Notes
21. A bank account against which the depositor can draw checks payable on demand.
inflation
risk
checking account
origination fee
22. Amount of money that is set aside for future purchases
annual report
discount brokers
savings
state income tax
23. The amount a corporation pays at a fixed amount when repaying a bond
financial advisers
strategic investing
interest
diversification
24. Bold and high-risk investments
US Treasury Notes
speculative investments
municipal bonds
Series I Savings Bond
25. Companies that provide extensive financial data to clients
dividend
ATM - Automatic Teller Machine
investor services
grace period
26. The chance that an investment's value will decrease
diversification
annuities
mutual fund
investing risk
27. Maximum amount of credit a lender will extend to a customer.
credit limit
interest
debit card
Series EE Savings Bond
28. The willingness to give up something you want now in return for something better in the future.
delayed gratification
credit score
chapter 7
systematic investing
29. A formal contract to repay borrowed money with interest at fixed intervals
delayed gratification
Rule of 72
well-know full-service brokers
bond
30. Bonds designed for investors wanting to protect again inflation losses
initial investing
dividend
Personal Identification Number - PIN
Series I Savings Bond
31. The chance that inflation will rise faster than the rate of return on an investment
interest-rate risk
stock
variable expenses
US Treasury Bills
32. The profit from an investment.
Investing
investor services
financial advisers
yield
33. Summary of a corporation's financial condition
financial pages
annual report
bank
tax deferred
34. A formal contract to repay borrowed money with interest at fixed intervals
political risk
bond
credit report
career
35. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
deductible
cash flow
maturity date
risk
36. The portion of the profits paid to the shareholders of a company.
stocks
dividend
Rule of 72
grace period
37. The process of dealing with the chance of a potential personal or financial loss.
well-know full-service brokers
non-market risk
risk management
short term goal
38. Losses in an investment as a result of the business cycle
inflation
coverage limit
stock market
market risk
39. Amount of money that is set aside for future purchases
portfolio
APR - Average Percentage Rate
well-know full-service brokers
savings
40. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
state income tax
time value of money
Temporary investment
collectibles
41. Conservative investing; used when you have 'excess' savings
mutual fund
US Treasury Bonds
risk
initial investing
42. The profit from an investment.
bank
yield
US Treasury Notes
interest-rate risk
43. Newspapers list of securities
financial pages
portfolio
career
social security tax
44. 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.
stock market
budget
social security tax
put-and-take account
45. Things that add comfort and pleasure to your life but you can live without if you need to.
annuities
wants
stock market
diversification
46. A unit of ownership in a corporation
stocks
career
credit
initial investing
47. A spending plan for managing money during a given period of time.
interest
deductible
budget
annual report
48. Associated with owning stock of similar groups of businesses
permanent investment
political risk
industry risk
well-know financial magazines
49. A certificate documenting the shareholder's ownership in the corporation
stock
systematic investing
options
Series EE Savings Bond
50. The credit union term for a checking account.
systematic investing
share draft account
annuities
credit union