Test your basic knowledge |

Financial Literacy Basics

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. Expenses that aren't paid every month and can be either fixed or variable.






2. The chance that inflation will rise faster than the rate of return on an investment






3. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25






4. The increase or decrease in the original purchase price of an investment over a period of time.






5. 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.






6. The process of dealing with the chance of a potential personal or financial loss.






7. The belief - qualities - or standards that you consider important or desirable.






8. Wall Street Journal and Barron's






9. 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.






10. Associated with owning stock of only one company






11. Standard and Poor's and Moody's






12. Brokers who provide clients with analysis and opinions






13. The date on which the borrowed money must be repaid






14. 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.






15. The willingness to give up something you want now in return for something better in the future.






16. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller






17. Pooling of money from many investors to buy a large & diverse selection of securities






18. Actions that the government might take that would reduce the value of an investment






19. Brokers who provided little or no information to clients






20. The increase or decrease in the original purchase price of an investment over a period of time.






21. Investors who are afraid to make investments






22. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.






23. A form of bankruptcy that allows you to erase most of your debt.






24. A goal to be achieved within the next three months.






25. A general and progressive increase in prices






26. A detailed record of your personal credit and financial transactions.






27. Coins & art & memorabilia or other items that are popular from time to time






28. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this






29. The willingness to give up something you want now in return for something better in the future.






30. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






31. Debt obligations of state or local governments






32. Regular and planned investments






33. Business Weekly & Forbes & Money






34. A legal process to get out of debt when you can no longer make all your required payments.






35. Actions that the government might take that would reduce the value of an investment






36. A unit of ownership in a corporation






37. The value of What is given up when you choose one option over another.






38. Wall Street Journal and Barron's






39. Earning interest on interest.






40. Amount of money that is set aside for future purchases






41. A term that describes investments on which earnings are not taxed until retirement






42. A spending plan for managing money during a given period of time.






43. The amount a corporation pays at a fixed amount when repaying a bond






44. The unique passcode number you use to get access to your savings and/or checking account






45. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






46. Conservative investing; used when you have 'excess' savings






47. The unique passcode number you use to get access to your savings and/or checking account






48. 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.






49. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.






50. The probability that injury - damage - or loss will occur.