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. A unit of ownership in a corporation






2. The credit union term for a savings account.






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






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






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






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






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






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






9. Associated with owning stock of only one company






10. Brokers who provided little or no information to clients






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






12. 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.






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






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






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






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






17. Charles Schwab & TD Ameritrade & E*TRADE






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






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






20. Investment choices that will be held for long periods






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






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






23. The entire amount of money you owe to lenders






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






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






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






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






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






29. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






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






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






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






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






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






35. Earning interest on interest.






36. Business Weekly & Forbes & Money






37. Regular and planned investments






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






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






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






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






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






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






44. Associated with owning stock of similar groups of businesses






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






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






47. The credit union term for a checking account.






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






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






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