SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 form of bankruptcy that allows you to erase most of your debt.
chapter 7
periodic or occasional expenses
bond
rate of return
2. The chance that inflation will rise faster than the rate of return on an investment
systematic investing
interest-rate risk
dividend
non-market risk
3. Charles Schwab & TD Ameritrade & E*TRADE
well-known discount brokers
interest
mutual funds
tax deferred
4. The maximum amount an insurance company will pay if you file a claim.
savings
credit
futures
coverage limit
5. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
options
ATM - Automatic Teller Machine
credit
opportunity cost
6. Regular and planned investments
systematic investing
state income tax
risk averse
ATM - Automatic Teller Machine
7. Contacts to buy and sell commodities or stocks for a specific price on a specific date
mutual funds
US Treasury Bills
futures
risk averse
8. The credit union term for a savings account.
share account
pay yourself first - P.Y.F.
cash flow
checking account
9. Bonds designed for investors wanting to protect again inflation losses
stock market
Series I Savings Bond
bankruptcy
company risk
10. Brokers who provided little or no information to clients
time value of money
discount brokers
periodic or occasional expenses
spending plan
11. A government sector that requires all public corporations to make annual reports available to their stockholders
Securities and Exchange Commission
values
credit union
interest-rate risk
12. The use of long-term savings to earn a financial return
Investing
industry risk
Securities and Exchange Commission
political risk
13. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.
spending plan
company risk
wants
time value of money
14. 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.
satellite decisions
Rule of 72
universal default
speculative investments
15. 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.
spyware
state income tax
principal
savings account
16. 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.
social security tax
over-the-limit fee
over-the-limit fee
deductible
17. Fee on credit card for making charges above your credit limit.
values
over-the-limit fee
US Treasury Notes
pay yourself first - P.Y.F.
18. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
annuities
well-known financial newspapers
satellite decisions
19. Pooling of money from many investors to buy a large & diverse selection of securities
financial advisers
pay yourself first - P.Y.F.
Personal Identification Number - PIN
mutual funds
20. The unique passcode number you use to get access to your savings and/or checking account
career
Personal Identification Number - PIN
capital gain
market risk
21. Merrill Lynch & Fidelity Investments & American Express
annual fee
futures
well-know full-service brokers
APR - Average Percentage Rate
22. Management of investment alternatives to maximize the growth of your portfolio
Securities and Exchange Commission
strategic investing
share draft account
well-know financial magazines
23. The setting aside of money for future use or other investments
annual report
pay yourself first - P.Y.F.
investor services
diversification
24. The use of long-term savings to earn a financial return
inflation
Investing
put-and-take account
interest-rate risk
25. A form of bankruptcy that allows you to erase most of your debt.
chapter 7
spending plan
initial investing
credit
26. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.
variable expenses
grace period
Series EE Savings Bond
annual fee
27. Spreading risk among many types of investments; one way to minimize risk
share draft account
financial advisers
diversification
industry risk
28. The value of What is given up when you choose one option over another.
industry risk
savings
opportunity cost
APR - Average Percentage Rate
29. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
diversification
principal
credit score
full-service broker
30. The value of What is given up when you choose one option over another.
opportunity cost
career
checking account
compounding interest rate
31. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
chapter 13
APR - Average Percentage Rate
annual fee
ATM - Automatic Teller Machine
32. The date on which the borrowed money must be repaid
investing risk
opportunity cost
maturity date
annual fee
33. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
delayed gratification
well-know financial magazines
social security tax
Series EE Savings Bond
34. The amount of money someone is willing to loan you.
financial pages
financial advisers
chapter 13
principal
35. A chosen pursuit - profession - or occupation
career
Temporary investment
annuities
risk averse
36. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.
dollar cost average
systematic investing
Series I Savings Bond
penny stocks
37. The belief - qualities - or standards that you consider important or desirable.
futures
short term goal
values
pay yourself first - P.Y.F.
38. The setting aside of money for future use or other investments
pay yourself first - P.Y.F.
industry risk
spending plan
risk averse
39. Regular and planned investments
Temporary investment
well-know financial magazines
speculative investments
systematic investing
40. A bank account against which the depositor can draw checks payable on demand.
checking account
systematic investing
career
cash flow
41. Amount of money that is set aside for future purchases
well-known financial newspapers
ATM - Automatic Teller Machine
savings
spending plan
42. The amount of money someone is willing to loan you.
principal
stocks
state income tax
US Treasury Notes
43. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller
permanent investment
US Treasury Notes
capital loss
share account
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.
deductible
put-and-take account
debit card
annuities
45. 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.
principal
mutual fund
coverage limit
options
46. A unit of ownership in a corporation
Securities and Exchange Commission
stocks
chapter 7
risk management
47. Wall Street Journal and Barron's
chapter 13
well-known financial newspapers
collectibles
rate of return
48. The belief - qualities - or standards that you consider important or desirable.
dividend
interest
compounding interest rate
values
49. A certificate documenting the shareholder's ownership in the corporation
futures
market risk
stock
opportunity cost
50. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness
market risk
annual report
credit score
coverage limit