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






2. Summary of a corporation's financial condition






3. 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.






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






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






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






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






8. 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.'






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






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






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






12. Regular and planned investments






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






14. Associated with owning stock of only one company






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






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






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






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






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






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






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






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






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






24. Investors who take to take chances






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






26. The maximum amount an insurance company will pay if you file a claim.






27. Merrill Lynch & Fidelity Investments & American Express






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






29. Brokers who provided little or no information to clients






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






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






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






33. Debt obligations of state or local governments






34. Standard and Poor's and Moody's






35. A chosen pursuit - profession - or occupation






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






37. Brokers who provide clients with analysis and opinions






38. The place where stocks are bought and sold.






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






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






41. 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.






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






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






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






45. Expenses that are not fixed.






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






47. 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.'






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






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






50. A general and progressive increase in prices