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. Debt obligations of state or local governments






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






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






4. 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.






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






6. Earning interest on interest.






7. Newspapers list of securities






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






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






10. Investors who are afraid to make investments






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






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






13. The setting aside of money for future use or other investments






14. Standard and Poor's and Moody's






15. 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.






16. 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.






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






18. Investors who are afraid to make investments






19. Summary of a corporation's financial condition






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






21. The chance that inflation will rise faster than the rate of return on an investment






22. Charles Schwab & TD Ameritrade & E*TRADE






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






24. The chance that an investment's value will decrease






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






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






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






29. A government sector that requires all public corporations to make annual reports available to their stockholders






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






31. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






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






37. A spending plan for managing money during a given period of time.






38. Newspapers list of securities






39. Debt obligations of state or local governments






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






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






42. Bold and high-risk investments






43. 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.






44. Investment choices that will be held for long periods






45. 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.






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






47. The process of dealing with the chance of a potential personal or financial loss.






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






49. Amount of money that is set aside for future purchases






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