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 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.






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






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






4. Newspapers list of securities






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






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






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






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






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






10. 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.






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






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






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






14. Debt obligations of state or local governments






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






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






17. A unit of ownership in a corporation






18. 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.






19. Associated with owning stock of only one company






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






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






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






23. The amount a corporation borrowed in a bond situation






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






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






26. Summary of a corporation's financial condition






27. Merrill Lynch & Fidelity Investments & American Express






28. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.






29. Business Weekly & Forbes & Money






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






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






32. Business Weekly & Forbes & Money






33. Expenses that are not fixed.






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






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






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






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






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






39. A general and progressive increase in prices






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






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






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






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






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






45. The credit union term for a checking account.






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






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






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






49. Summary of a corporation's financial condition






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