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. Another term for budget






2. Investors who are afraid to make investments






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






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






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






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






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






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






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






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






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






12. Property consisting of houses and land






13. Charles Schwab & TD Ameritrade & E*TRADE






14. Expenses that are not fixed.






15. Associated with owning stock of similar groups of businesses






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






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






18. Uncontrollable and unpredictable events that cause an investment to lose value






19. The amount a corporation borrowed in a bond situation






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






21. The entire amount of money you owe to lenders






22. 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.






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






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






25. 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.






26. Fee on credit card for making charges above your credit limit.






27. Uncontrollable and unpredictable events that cause an investment to lose value






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






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






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






31. 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.






32. The unique passcode number you use to get access to your savings and/or checking account






33. A chosen pursuit - profession - or occupation






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






35. Regular and planned investments






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






37. Merrill Lynch & Fidelity Investments & American Express






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






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






40. Associated with owning stock of similar groups of businesses






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






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






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






44. The unique passcode number you use to get access to your savings and/or checking account






45. Newspapers list of securities






46. Debt obligations of state or local governments






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






48. 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.'






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






50. Debt obligations of corporations