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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 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.
tax deferred
Rule of 72
universal default
interest
2. A goal to be achieved within the next three months.
annuities
principal
deductible
short term goal
3. The belief - qualities - or standards that you consider important or desirable.
values
principal
annuities
principal
4. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.
pay yourself first - P.Y.F.
Temporary investment
compounding interest rate
chapter 13
5. Expenses that are not fixed.
principal
principal
variable expenses
Rule of 72
6. A term that describes investments on which earnings are not taxed until retirement
tax deferred
annual fee
chapter 13
wants
7. Expenses that are not fixed.
Securities and Exchange Commission
risk
variable expenses
ATM - Automatic Teller Machine
8. A term that describes investments on which earnings are not taxed until retirement
tax deferred
risk
financial advisers
savings account
9. Investors who take to take chances
risk taker
credit history
phishing
speculative investments
10. Investment choices that will be re-evaluated within a year or less
Rule of 72
mutual fund
Temporary investment
well-known investor services
11. A bank account against which the depositor can draw checks payable on demand.
well-known discount brokers
spyware
checking account
principal
12. Standard and Poor's and Moody's
well-known investor services
Personal Identification Number - PIN
phishing
social security tax
13. The entire amount of money you owe to lenders
well-known investor services
dollar cost average
debt
checking account
14. Newspapers list of securities
corporate bonds
stock
share draft account
financial pages
15. A government sector that requires all public corporations to make annual reports available to their stockholders
US Treasury Bills
systematic investing
Securities and Exchange Commission
interest
16. The setting aside of money for future use or other investments
company risk
pay yourself first - P.Y.F.
municipal bonds
variable expenses
17. The amount a corporation pays at a fixed amount when repaying a bond
well-known financial newspapers
interest
spending plan
checking account
18. Coins & art & memorabilia or other items that are popular from time to time
interest-rate risk
Investing
spending plan
collectibles
19. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
well-know financial magazines
yield
phishing
futures
20. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
diversification
savings account
share account
21. Fee on credit card for making charges above your credit limit.
credit union
well-know full-service brokers
interest-rate risk
over-the-limit fee
22. Another term for budget
spending plan
compounding interest rate
annual report
savings
23. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
risk taker
investing risk
annual report
24. A technique used for estimating the number of years required to double your money at a given rate
Rule of 72
universal default
universal default
risk management
25. Conservative investing; used when you have 'excess' savings
mutual funds
bank
initial investing
stocks
26. A formal contract to repay borrowed money with interest at fixed intervals
bond
debit card
financial pages
share draft account
27. The probability that injury - damage - or loss will occur.
social security tax
risk
credit limit
grace period
28. Merrill Lynch & Fidelity Investments & American Express
stocks
collectibles
Investing
well-know full-service brokers
29. People trained to give investment advise based on your goals & age & lifestyle & etc
financial advisers
strategic investing
strategic investing
principal
30. A form of bankruptcy that allows you to erase most of your debt.
checking account
cash flow
chapter 7
credit limit
31. Things that add comfort and pleasure to your life but you can live without if you need to.
risk taker
US Treasury Notes
principal
wants
32. The increase or decrease in the original purchase price of an investment over a period of time.
inflation
stock market
rate of return
market risk
33. 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.'
financial advisers
variable expenses
political risk
debit card
34. Summary of a corporation's financial condition
corporate bonds
mutual fund
annual report
market risk
35. Bold and high-risk investments
non-market risk
speculative investments
Securities and Exchange Commission
risk
36. Expenses that aren't paid every month and can be either fixed or variable.
APR - Average Percentage Rate
risk
periodic or occasional expenses
credit
37. Collection of investments
rate of return
US Treasury Bonds
options
portfolio
38. US treasury security that matures in 2 & 5 & or 10 years
spending plan
financial pages
US Treasury Notes
portfolio
39. Actions that the government might take that would reduce the value of an investment
political risk
annual fee
deductible
discount brokers
40. 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
capital gain
US Treasury Notes
tax deferred
41. A spending plan for managing money during a given period of time.
savings account
budget
interest-rate risk
origination fee
42. A spending plan for managing money during a given period of time.
budget
well-known discount brokers
futures
financial pages
43. Debt obligations of state or local governments
origination fee
diversification
municipal bonds
stock market
44. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.
systematic investing
tax deferred
savings account
deductible
45. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
financial advisers
bank
over-the-limit fee
stock market
46. A payroll deduction collected by employers by law and sent to the state government to support state services.
state income tax
Rule of 72
dollar cost average
annual report
47. People trained to give investment advise based on your goals & age & lifestyle & etc
inflation
permanent investment
financial advisers
market risk
48. Business Weekly & Forbes & Money
well-know financial magazines
stock market
risk taker
deductible
49. The credit union term for a checking account.
share draft account
savings
Personal Identification Number - PIN
risk averse
50. Business Weekly & Forbes & Money
well-know financial magazines
ATM - Automatic Teller Machine
Rule of 72
Investing