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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. Charles Schwab & TD Ameritrade & E*TRADE
well-known investor services
bond
stock market
well-known discount brokers
2. The process of dealing with the chance of a potential personal or financial loss.
capital gain
risk management
bankruptcy
well-know financial magazines
3. The chance that inflation will rise faster than the rate of return on an investment
risk taker
inflation
interest-rate risk
Rule of 72
4. The belief - qualities - or standards that you consider important or desirable.
risk management
Investing
chapter 7
values
5. Movement of money you receive and the money you spend
compounding interest rate
short term goal
debt
cash flow
6. A detailed record of your personal credit and financial transactions.
credit report
pay yourself first - P.Y.F.
real estate
well-know financial magazines
7. The amount of money someone is willing to loan you.
short term goal
diversification
strategic investing
principal
8. A technique used for estimating the number of years required to double your money at a given rate
origination fee
annual fee
Rule of 72
credit union
9. A unit of ownership in a corporation
yield
state income tax
short term goal
stocks
10. US treasury security that matures in 2 & 5 & or 10 years
US Treasury Notes
savings
dollar cost average
corporate bonds
11. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.
origination fee
US Treasury Bonds
values
debt
12. Low-priced stocks of small companies that have no track record
rate of return
dollar cost average
yield
penny stocks
13. A form of bankruptcy that allows you to erase most of your debt.
chapter 7
Investing
options
mutual fund
14. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.
risk management
Rule of 72
ATM - Automatic Teller Machine
stock
15. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25
grace period
spyware
checking account
Series EE Savings Bond
16. Standard and Poor's and Moody's
put-and-take account
Rule of 72
well-known investor services
budget
17. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this
risk
put-and-take account
Temporary investment
ATM - Automatic Teller Machine
18. Collection of investments
portfolio
non-market risk
checking account
real estate
19. Earning interest on interest.
Series I Savings Bond
compounding interest rate
capital loss
checking account
20. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.
phishing
capital loss
well-known investor services
risk averse
21. The probability that injury - damage - or loss will occur.
maturity date
municipal bonds
risk
Rule of 72
22. Amount of money that is set aside for future purchases
annual fee
discount brokers
savings
US Treasury Bills
23. Bonds designed for investors wanting to protect again inflation losses
investing risk
Series I Savings Bond
bankruptcy
risk
24. Things that add comfort and pleasure to your life but you can live without if you need to.
time value of money
wants
well-known financial newspapers
principal
25. Associated with owning stock of only one company
career
company risk
discount brokers
annual fee
26. A formal contract to repay borrowed money with interest at fixed intervals
bond
variable expenses
time value of money
well-known investor services
27. The amount of money someone is willing to loan you.
full-service broker
over-the-limit fee
bank
principal
28. The unique passcode number you use to get access to your savings and/or checking account
initial investing
Personal Identification Number - PIN
yield
penny stocks
29. Summary of a corporation's financial condition
variable expenses
penny stocks
annual report
futures
30. Investing with a series of regular payments; usually associated with life insurance companies
annuities
rate of return
short term goal
systematic investing
31. US treasury security that matures from a few days to one year
annual fee
discount brokers
US Treasury Bills
over-the-limit fee
32. A spending plan for managing money during a given period of time.
risk taker
diversification
budget
social security tax
33. The unique passcode number you use to get access to your savings and/or checking account
Personal Identification Number - PIN
credit report
industry risk
credit score
34. Coins & art & memorabilia or other items that are popular from time to time
inflation
collectibles
futures
well-known financial newspapers
35. The chance that an investment's value will decrease
principal
well-know financial magazines
investing risk
bankruptcy
36. Standard and Poor's and Moody's
well-known investor services
values
inflation
options
37. Reducing investment risk by putting money in several different types of investments.
non-market risk
diversification
principal
dollar cost average
38. Spreading risk among many types of investments; one way to minimize risk
diversification
bankruptcy
well-know financial magazines
Investing
39. The belief - qualities - or standards that you consider important or desirable.
values
credit history
futures
futures
40. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date
chapter 13
share account
short term goal
options
41. Property consisting of houses and land
real estate
well-known financial newspapers
origination fee
savings account
42. 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.
strategic investing
permanent investment
periodic or occasional expenses
spyware
43. Companies that provide extensive financial data to clients
investor services
Temporary investment
chapter 13
Securities and Exchange Commission
44. A certificate documenting the shareholder's ownership in the corporation
corporate bonds
well-known discount brokers
stock
bank
45. Companies that provide extensive financial data to clients
credit
inflation
savings account
investor services
46. Brokers who provided little or no information to clients
values
well-known discount brokers
discount brokers
Investing
47. US treasury security that matures in 30 years
share draft account
non-market risk
US Treasury Bonds
credit union
48. Spreading risk among many types of investments; one way to minimize risk
checking account
spending plan
risk averse
diversification
49. Newspapers list of securities
time value of money
well-known financial newspapers
financial pages
bond
50. The place where stocks are bought and sold.
periodic or occasional expenses
well-known financial newspapers
compounding interest rate
stock market