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. Movement of money you receive and the money you spend






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






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






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






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






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






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






8. Wall Street Journal and Barron's






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






10. Newspapers list of securities






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






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






13. Companies that provide extensive financial data to clients






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






15. Investing with a series of regular payments; usually associated with life insurance companies






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






17. Investors who are afraid to make investments






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






19. Associated with owning stock of only one company






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






21. A detailed record of your personal credit and financial transactions.






22. Investors who are afraid to make investments






23. Debt obligations of corporations






24. Collection of investments






25. Merrill Lynch & Fidelity Investments & American Express






26. Standard and Poor's and Moody's






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






28. Standard and Poor's and Moody's






29. The entire amount of money you owe to lenders






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






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






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






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






34. Bold and high-risk investments






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






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






37. Investors who take to take chances






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






39. US treasury security that matures in 30 years






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






41. 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.






42. Bold and high-risk investments






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






44. Associated with owning stock of similar groups of businesses






45. Bonds designed for investors wanting to protect again inflation losses






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






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






48. Another term for budget






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






50. 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.