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






2. The profit from an investment.






3. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.






4. Associated with owning stock of only one company






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






6. Things that add comfort and pleasure to your life but you can live without if you need to.






7. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.






8. Business Weekly & Forbes & Money






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






10. 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.'






11. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.






12. Smaller decisions that can result from a major decision.






13. A formal contract to repay borrowed money with interest at fixed intervals






14. 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.






15. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.






16. Standard and Poor's and Moody's






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






18. Investors who take to take chances






19. Uncontrollable and unpredictable events that cause an investment to lose value






20. A bank account against which the depositor can draw checks payable on demand.






21. Investment choices that will be held for long periods






22. Collection of investments






23. Brokers who provided little or no information to clients






24. Maximum amount of credit a lender will extend to a customer.






25. A technique used for estimating the number of years required to double your money at a given rate






26. US treasury security that matures in 30 years






27. Spreading risk among many types of investments; one way to minimize risk






28. Investors who are afraid to make investments






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






30. The profit from an investment.






31. Earning interest on interest.






32. 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.






33. The amount a corporation borrowed in a bond situation






34. Companies that provide extensive financial data to clients






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






36. The amount of money someone is willing to loan you.






37. Summary of a corporation's financial condition






38. Bold and high-risk investments






39. Companies that provide extensive financial data to clients






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






41. US treasury security that matures from a few days to one year






42. A chosen pursuit - profession - or occupation






43. A general and progressive increase in prices






44. Expenses that are not fixed.






45. Brokers who provide clients with analysis and opinions






46. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller






47. Management of investment alternatives to maximize the growth of your portfolio






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






49. An amount that credit card companies can charge for the use of a credit card.






50. Contacts to buy and sell commodities or stocks for a specific price on a specific date