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. Collection of investments






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






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






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






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






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






7. Brokers who provided little or no information to clients






8. The place where stocks are bought and sold.






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






10. Another term for budget






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






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






13. 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.






14. 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.






15. Investors who take to take chances






16. Debt obligations of corporations






17. A form of bankruptcy that allows you to erase most of your debt.






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






19. Debt obligations of state or local governments






20. A unit of ownership in a corporation






21. Investors who take to take chances






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






23. Associated with owning stock of similar groups of businesses






24. Wall Street Journal and Barron's






25. Newspapers list of securities






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






27. Associated with owning stock of similar groups of businesses






28. A chosen pursuit - profession - or occupation






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






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






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






32. The use of long-term savings to earn a financial return






33. The credit union term for a checking account.






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






35. 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.






36. Debt obligations of corporations






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






38. Companies that provide extensive financial data to clients






39. Business Weekly & Forbes & Money






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






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






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






43. Charles Schwab & TD Ameritrade & E*TRADE






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






45. The maximum amount an insurance company will pay if you file a claim.






46. 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.'






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






48. Charles Schwab & TD Ameritrade & E*TRADE






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






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