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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 general and progressive increase in prices
ATM - Automatic Teller Machine
time value of money
interest-rate risk
inflation
2. Bold and high-risk investments
savings
US Treasury Bills
speculative investments
periodic or occasional expenses
3. A technique used for estimating the number of years required to double your money at a given rate
non-market risk
well-known discount brokers
budget
Rule of 72
4. Expenses that aren't paid every month and can be either fixed or variable.
periodic or occasional expenses
capital gain
time value of money
systematic investing
5. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
career
phishing
opportunity cost
variable expenses
6. Fee on credit card for making charges above your credit limit.
cash flow
over-the-limit fee
credit limit
stock market
7. Uncontrollable and unpredictable events that cause an investment to lose value
non-market risk
well-known financial newspapers
US Treasury Bonds
compounding interest rate
8. A goal to be achieved within the next three months.
well-known investor services
well-known investor services
short term goal
opportunity cost
9. Actions that the government might take that would reduce the value of an investment
budget
industry risk
stock market
political risk
10. Standard and Poor's and Moody's
futures
well-known discount brokers
well-known investor services
risk averse
11. Bonds designed for investors wanting to protect again inflation losses
Series I Savings Bond
bond
debit card
bankruptcy
12. Another term for budget
capital gain
spending plan
annual fee
stocks
13. A detailed record of your personal credit and financial transactions.
values
periodic or occasional expenses
bank
credit report
14. A certificate documenting the shareholder's ownership in the corporation
Temporary investment
budget
savings
stock
15. 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.
universal default
bankruptcy
corporate bonds
grace period
16. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
put-and-take account
options
Investing
phishing
17. Investment choices that will be held for long periods
Series EE Savings Bond
Securities and Exchange Commission
well-know full-service brokers
permanent investment
18. The probability that injury - damage - or loss will occur.
financial advisers
risk
US Treasury Bonds
wants
19. 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.
financial pages
company risk
principal
savings account
20. Brokers who provided little or no information to clients
satellite decisions
principal
over-the-limit fee
discount brokers
21. 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.
universal default
options
credit score
periodic or occasional expenses
22. Amount of money that is set aside for future purchases
strategic investing
Series EE Savings Bond
corporate bonds
savings
23. Brokers who provided little or no information to clients
share draft account
chapter 7
spyware
discount brokers
24. Associated with owning stock of similar groups of businesses
debit card
credit limit
industry risk
full-service broker
25. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
well-known financial newspapers
chapter 13
mutual funds
26. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
political risk
put-and-take account
grace period
share account
27. Uncontrollable and unpredictable events that cause an investment to lose value
full-service broker
discount brokers
non-market risk
systematic investing
28. A legal process to get out of debt when you can no longer make all your required payments.
US Treasury Bills
Series EE Savings Bond
variable expenses
bankruptcy
29. Movement of money you receive and the money you spend
risk averse
grace period
cash flow
well-known discount brokers
30. Maximum amount of credit a lender will extend to a customer.
credit limit
compounding interest rate
spending plan
social security tax
31. Spreading risk among many types of investments; one way to minimize risk
capital gain
diversification
phishing
credit limit
32. The credit union term for a savings account.
spyware
share account
tax deferred
political risk
33. The entire amount of money you owe to lenders
risk averse
values
debt
opportunity cost
34. Spreading risk among many types of investments; one way to minimize risk
systematic investing
stocks
diversification
portfolio
35. The amount a corporation pays at a fixed amount when repaying a bond
interest
well-know financial magazines
Temporary investment
annual report
36. A form of bankruptcy that allows you to erase most of your debt.
career
Securities and Exchange Commission
risk
chapter 7
37. The profit from an investment.
yield
inflation
US Treasury Bonds
Rule of 72
38. Investors who take to take chances
risk taker
share draft account
debt
Securities and Exchange Commission
39. Things that add comfort and pleasure to your life but you can live without if you need to.
credit history
coverage limit
wants
permanent investment
40. 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.
investor services
US Treasury Bills
savings account
annuities
41. US treasury security that matures in 30 years
penny stocks
bankruptcy
industry risk
US Treasury Bonds
42. The place where stocks are bought and sold.
systematic investing
Rule of 72
futures
stock market
43. Newspapers list of securities
company risk
financial pages
phishing
corporate bonds
44. 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.
over-the-limit fee
APR - Average Percentage Rate
credit score
stocks
45. The increase or decrease in the original purchase price of an investment over a period of time.
risk management
diversification
rate of return
investor services
46. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.
political risk
principal
well-known investor services
credit union
47. Pooling of money from many investors to buy a large & diverse selection of securities
bank
mutual funds
universal default
systematic investing
48. The setting aside of money for future use or other investments
Temporary investment
APR - Average Percentage Rate
pay yourself first - P.Y.F.
capital loss
49. Another term for budget
spending plan
US Treasury Bills
bond
strategic investing
50. Investing with a series of regular payments; usually associated with life insurance companies
deductible
corporate bonds
checking account
annuities