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. Investment choices that will be held for long periods






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






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






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






5. Spreading risk among many types of investments; one way to minimize risk






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






7. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.






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






9. Business Weekly & Forbes & Money






10. 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.






11. The credit union term for a savings account.






12. Investors who take to take chances






13. 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.






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






15. Regular and planned investments






16. Bold and high-risk investments






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






19. Debt obligations of state or local governments






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






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






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






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






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






25. Collection of investments






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






27. A chosen pursuit - profession - or occupation






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






29. A general and progressive increase in prices






30. Earning interest on interest.






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






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






33. Property consisting of houses and land






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






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






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






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






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






39. A unit of ownership in a corporation






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






41. Spreading risk among many types of investments; one way to minimize risk






42. Brokers who provide clients with analysis and opinions






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






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






45. Companies that provide extensive financial data to clients






46. The place where stocks are bought and sold.






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






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






49. Newspapers list of securities






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