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






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






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






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






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






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






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






8. People trained to give investment advise based on your goals & age & lifestyle & etc






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






10. Bold and high-risk investments






11. Bold and high-risk investments






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






13. 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.






14. Companies that provide extensive financial data to clients






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






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






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






18. US treasury security that matures in 30 years






19. Investment choices that will be held for long periods






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






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






22. 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.






23. A government sector that requires all public corporations to make annual reports available to their stockholders






24. Brokers who provided little or no information to clients






25. US treasury security that matures in 2 & 5 & or 10 years






26. Low-priced stocks of small companies that have no track record






27. Movement of money you receive and the money you spend






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






29. 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.






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






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






32. Expenses that are not fixed.






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






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






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






36. 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.






37. Associated with owning stock of similar groups of businesses






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






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






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






41. 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.






42. A general and progressive increase in prices






43. The portion of the profits paid to the shareholders of a company.






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






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






46. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness






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






48. Brokers who provide clients with analysis and opinions






49. The place where stocks are bought and sold.






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






Can you answer 50 questions in 15 minutes?



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