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. Newspapers list of securities






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






3. The profit from an investment.






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






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






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






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






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






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






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






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






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






13. 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.






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






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






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






17. Standard and Poor's and Moody's






18. Bold and high-risk investments






19. 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.






20. 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.






21. A general and progressive increase in prices






22. The amount a corporation borrowed in a bond situation






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






24. Investment choices that will be held for long periods






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






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






27. Another term for budget






28. The entire amount of money you owe to lenders






29. The credit union term for a checking account.






30. Investors who take to take chances






31. Brokers who provided little or no information to clients






32. Business Weekly & Forbes & Money






33. Regular and planned investments






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






35. Collection of investments






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






37. 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.






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






39. Bold and high-risk investments






40. A chosen pursuit - profession - or occupation






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






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






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






44. The credit union term for a savings account.






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






46. Earning interest on interest.






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






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






49. Investors who take to take chances






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