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. Amount of money that is set aside for future purchases






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






3. Business Weekly & Forbes & Money






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






5. A unit of ownership in a corporation






6. Contacts to buy and sell commodities or stocks for a specific price on a specific date






7. 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.






8. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller






9. 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.






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






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






12. Business Weekly & Forbes & Money






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






14. The value of What is given up when you choose one option over another.






15. Investment choices that will be held for long periods






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






17. 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.






18. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.






19. Charles Schwab & TD Ameritrade & E*TRADE






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






21. The value of What is given up when you choose one option over another.






22. Wall Street Journal and Barron's






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






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






25. 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.






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






27. The profit from an investment.






28. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller






29. US treasury security that matures from a few days to one year






30. 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.






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






32. Investors who are afraid to make investments






33. Investment choices that will be held for long periods






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






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






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






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






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






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






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






41. Regular and planned investments






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






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






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






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






46. A general and progressive increase in prices






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






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






50. Investors who take to take chances