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. Associated with owning stock of only one company






2. Associated with owning stock of similar groups of businesses






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






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






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






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






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






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






9. A unit of ownership in a corporation






10. Debt obligations of state or local governments






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






12. Bold and high-risk investments






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






14. The amount a corporation borrowed in a bond situation






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






16. Summary of a corporation's financial condition






17. Merrill Lynch & Fidelity Investments & American Express






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






19. Investment choices that will be held for long periods






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






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






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






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






24. The credit union term for a savings account.






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






26. 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.






27. Earning interest on interest.






28. US treasury security that matures in 30 years






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






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






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






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






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






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






35. Debt obligations of state or local governments






36. Expenses that are not fixed.






37. Companies that provide extensive financial data to clients






38. Coins & art & memorabilia or other items that are popular from time to time






39. Summary of a corporation's financial condition






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






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






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






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






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






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






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






47. 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.






48. 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.






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






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