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. The date on which the borrowed money must be repaid






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






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






4. Standard and Poor's and Moody's






5. Newspapers list of securities






6. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.






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






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






9. Debt obligations of state or local governments






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






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






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






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






14. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.






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






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






17. Collection of investments






18. The amount a corporation borrowed in a bond situation






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






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






21. 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.






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






23. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.






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






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






26. Debt obligations of state or local governments






27. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date






28. Business Weekly & Forbes & Money






29. Bonds designed for investors wanting to protect again inflation losses






30. Bonds designed for investors wanting to protect again inflation losses






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






32. The place where stocks are bought and sold.






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






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






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






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






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






38. Investors who are afraid to make investments






39. 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.






40. A unit of ownership in a corporation






41. 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.






42. Summary of a corporation's financial condition






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






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






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






46. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.






47. Associated with owning stock of similar groups of businesses






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






49. Wall Street Journal and Barron's






50. Wall Street Journal and Barron's