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. The date on which the borrowed money must be repaid






2. 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.






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






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






5. A unit of ownership in a corporation






6. The use of long-term savings to earn a financial return






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






8. Reducing investment risk by putting money in several different types of investments.






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






10. Companies that provide extensive financial data to clients






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






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






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






14. Another term for budget






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






16. 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.






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






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






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






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






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






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






23. Investors who take to take chances






24. Investors who are afraid to make investments






25. Associated with owning stock of only one company






26. A general and progressive increase in prices






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






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






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






30. Property consisting of houses and land






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






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






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






34. A payroll deduction collected by employers by law and sent to the state government to support state services.






35. US treasury security that matures in 30 years






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






37. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.






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






39. Property consisting of houses and land






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






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






42. 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.






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






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






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






46. Companies that provide extensive financial data to clients






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






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






49. 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.






50. Brokers who provide clients with analysis and opinions