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






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






3. Regular and planned investments






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






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






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






7. A unit of ownership in a corporation






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






9. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date






10. Brokers who provide clients with analysis and opinions






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






12. The chance that an investment's value will decrease






13. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date






14. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.






15. Investment choices that will be re-evaluated within a year or less






16. Investing with a series of regular payments; usually associated with life insurance companies






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






18. Regular and planned investments






19. Losses in an investment as a result of the business cycle






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






21. 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.






22. Standard and Poor's and Moody's






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






24. A unit of ownership in a corporation






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






26. 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.






27. Fee on credit card for making charges above your credit limit.






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






29. Companies that provide extensive financial data to clients






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






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






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






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






34. Business Weekly & Forbes & Money






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






36. Bold and high-risk investments






37. Standard and Poor's and Moody's






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






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






40. Expenses that are not fixed.






41. A general and progressive increase in prices






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






43. The setting aside of money for future use or other investments






44. Summary of a corporation's financial condition






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






46. A summary of a person's borrowing and repayment history.






47. A certificate documenting the shareholder's ownership in the corporation






48. Merrill Lynch & Fidelity Investments & American Express






49. Collection of investments






50. Another term for budget