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 certificate documenting the shareholder's ownership in the corporation






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






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






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






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






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






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






8. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'






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






10. A general and progressive increase in prices






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






12. Fee on credit card for making charges above your credit limit.






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






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






15. Investors who take to take chances






16. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness






17. Collection of investments






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






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






20. Merrill Lynch & Fidelity Investments & American Express






21. Expenses that are not fixed.






22. Standard and Poor's and Moody's






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






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






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






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






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






28. US treasury security that matures in 30 years






29. Debt obligations of state or local governments






30. 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.






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






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






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






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






35. Investors who take to take chances






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






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






38. 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.






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






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






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






42. Companies that provide extensive financial data to clients






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






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






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






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






47. Business Weekly & Forbes & Money






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






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






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