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






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






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






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






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






6. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.






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






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






9. Bold and high-risk investments






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






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






12. 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.






13. Summary of a corporation's financial condition






14. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller






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






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






17. Charles Schwab & TD Ameritrade & E*TRADE






18. Investors who are afraid to make investments






19. The credit union term for a savings account.






20. The place where stocks are bought and sold.






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






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






23. Bold and high-risk investments






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






25. US treasury security that matures in 30 years






26. Debt obligations of state or local governments






27. Investors who take to take chances






28. A chosen pursuit - profession - or occupation






29. Associated with owning stock of only one company






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






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






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






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






34. Expenses that are not fixed.






35. The credit union term for a savings account.






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






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






38. Companies that provide extensive financial data to clients






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






40. The entire amount of money you owe to lenders






41. Property consisting of houses and land






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






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






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






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






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






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






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






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






50. Charles Schwab & TD Ameritrade & E*TRADE