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






2. The date on which the borrowed money must be repaid






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






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






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






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






7. The credit union term for a savings account.






8. Collection of investments






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






10. Bold and high-risk investments






11. 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.






12. The place where stocks are bought and sold.






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






14. A unit of ownership in a corporation






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






16. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






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






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






22. Companies that provide extensive financial data to clients






23. A chosen pursuit - profession - or occupation






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






25. Associated with owning stock of similar groups of businesses






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






27. Collection of investments






28. The profit from an investment.






29. 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.






30. Standard and Poor's and Moody's






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






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






33. Associated with owning stock of only one company






34. Merrill Lynch & Fidelity Investments & American Express






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






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






37. Earning interest on interest.






38. The increase or decrease in the original purchase price of an investment over a period of time.






39. Regular and planned investments






40. Conservative investing; used when you have 'excess' savings






41. The credit union term for a checking account.






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






43. Debt obligations of state or local governments






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






45. 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.






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






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






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






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






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