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






2. Merrill Lynch & Fidelity Investments & American Express






3. Investors who take to take chances






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






5. 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.






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






7. Merrill Lynch & Fidelity Investments & American Express






8. Investors who are afraid to make investments






9. A chosen pursuit - profession - or occupation






10. Standard and Poor's and Moody's






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






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






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






14. Brokers who provide clients with analysis and opinions






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






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






17. Collection of investments






18. Summary of a corporation's financial condition






19. Investors who are afraid to make investments






20. 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.






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






22. A chosen pursuit - profession - or occupation






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






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






25. The profit from an investment.






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






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






28. Associated with owning stock of similar groups of businesses






29. Uncontrollable and unpredictable events that cause an investment to lose value






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






31. Expenses that are not fixed.






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






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






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






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






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






37. 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.






38. The credit union term for a savings account.






39. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.






40. Charles Schwab & TD Ameritrade & E*TRADE






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






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






43. Associated with owning stock of only one company






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






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






46. Another term for budget






47. The place where stocks are bought and sold.






48. 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.






49. A unit of ownership in a corporation






50. The credit union term for a checking account.