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. US treasury security that matures in 30 years






2. Another term for budget






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






4. Expenses that are not fixed.






5. Associated with owning stock of only one company






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






7. Property consisting of houses and land






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






9. Associated with owning stock of similar groups of businesses






10. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






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






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






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






14. Debt obligations of state or local governments






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






16. Earning interest on interest.






17. The amount a corporation pays at a fixed amount when repaying a bond






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






19. Another term for budget






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






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






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






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






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






25. Companies that provide extensive financial data to clients






26. Standard and Poor's and Moody's






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






28. Bold and high-risk investments






29. 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.'






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






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






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






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






34. Debt obligations of state or local governments






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






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






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






38. Wall Street Journal and Barron's






39. Maximum amount of credit a lender will extend to a customer.






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






41. 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.






42. The amount a corporation borrowed in a bond situation






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






44. A unit of ownership in a corporation






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






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






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






48. The unique passcode number you use to get access to your savings and/or checking account






49. A payroll deduction collected by employers by law and sent to the state government to support state services.






50. 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.