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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.
Rule of 72
spyware
grace period
well-know financial magazines
2. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.
spyware
maturity date
tax deferred
stocks
3. 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.'
investor services
stock
bond
debit card
4. Investing with a series of regular payments; usually associated with life insurance companies
savings account
annuities
bond
career
5. Property consisting of houses and land
stock market
municipal bonds
Series EE Savings Bond
real estate
6. US treasury security that matures in 2 & 5 & or 10 years
bond
speculative investments
US Treasury Notes
corporate bonds
7. The amount a corporation pays at a fixed amount when repaying a bond
interest
stock
risk
mutual fund
8. Fee on credit card for making charges above your credit limit.
futures
systematic investing
pay yourself first - P.Y.F.
over-the-limit fee
9. Maximum amount of credit a lender will extend to a customer.
state income tax
diversification
initial investing
credit limit
10. The use of long-term savings to earn a financial return
speculative investments
short term goal
risk averse
Investing
11. Investors who are afraid to make investments
risk averse
maturity date
credit history
well-known financial newspapers
12. Investors who take to take chances
risk taker
cash flow
credit history
annuities
13. Wall Street Journal and Barron's
non-market risk
well-known financial newspapers
market risk
risk management
14. The unique passcode number you use to get access to your savings and/or checking account
US Treasury Bonds
Personal Identification Number - PIN
stock market
ATM - Automatic Teller Machine
15. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
values
wants
chapter 13
16. The chance that an investment's value will decrease
stocks
spending plan
investor services
investing risk
17. The increase or decrease in the original purchase price of an investment over a period of time.
rate of return
industry risk
checking account
time value of money
18. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
Investing
spending plan
phishing
penny stocks
19. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
grace period
corporate bonds
Series EE Savings Bond
chapter 13
20. 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
options
credit union
non-market risk
21. A detailed record of your personal credit and financial transactions.
credit report
chapter 13
state income tax
initial investing
22. Earning interest on interest.
bank
compounding interest rate
Rule of 72
political risk
23. A general and progressive increase in prices
principal
state income tax
inflation
credit score
24. The entire amount of money you owe to lenders
debt
values
career
discount brokers
25. Losses in an investment as a result of the business cycle
maturity date
APR - Average Percentage Rate
market risk
share draft account
26. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
bankruptcy
grace period
ATM - Automatic Teller Machine
stocks
27. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.
bank
risk taker
full-service broker
political risk
28. Another term for budget
capital gain
bankruptcy
spending plan
well-know full-service brokers
29. 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.
put-and-take account
universal default
risk
state income tax
30. The willingness to give up something you want now in return for something better in the future.
wants
deductible
dollar cost average
delayed gratification
31. The date on which the borrowed money must be repaid
satellite decisions
permanent investment
maturity date
US Treasury Notes
32. US treasury security that matures in 30 years
checking account
stock
US Treasury Bills
US Treasury Bonds
33. 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.
credit report
short term goal
Rule of 72
Series EE Savings Bond
34. A spending plan for managing money during a given period of time.
pay yourself first - P.Y.F.
diversification
budget
Temporary investment
35. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
Series EE Savings Bond
spyware
origination fee
rate of return
36. Property consisting of houses and land
dollar cost average
opportunity cost
US Treasury Notes
real estate
37. Spreading risk among many types of investments; one way to minimize risk
opportunity cost
risk averse
diversification
well-known investor services
38. A detailed record of your personal credit and financial transactions.
market risk
credit report
credit limit
mutual funds
39. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
ATM - Automatic Teller Machine
credit report
well-know full-service brokers
risk management
40. Merrill Lynch & Fidelity Investments & American Express
well-know full-service brokers
US Treasury Bills
checking account
coverage limit
41. A spending plan for managing money during a given period of time.
stocks
US Treasury Bonds
risk management
budget
42. A general and progressive increase in prices
bankruptcy
inflation
Temporary investment
tax deferred
43. Brokers who provided little or no information to clients
mutual funds
Investing
discount brokers
Series EE Savings Bond
44. Standard and Poor's and Moody's
maturity date
debt
well-known investor services
dollar cost average
45. A formal contract to repay borrowed money with interest at fixed intervals
capital gain
annuities
bond
put-and-take account
46. The place where stocks are bought and sold.
risk
options
stock market
annual report
47. The profit from an investment.
state income tax
credit
credit
yield
48. The date on which the borrowed money must be repaid
ATM - Automatic Teller Machine
yield
Rule of 72
maturity date
49. 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.
values
origination fee
savings account
US Treasury Bills
50. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller
Personal Identification Number - PIN
values
well-known investor services
capital gain