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






2. Regular and planned investments






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






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






5. Standard and Poor's and Moody's






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






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






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






9. Debt obligations of corporations






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






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






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






13. Merrill Lynch & Fidelity Investments & American Express






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






15. Charles Schwab & TD Ameritrade & E*TRADE






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






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






18. A unit of ownership in a corporation






19. 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.






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






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






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






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






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






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






26. Another term for budget






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






28. Investors who take to take chances






29. A general and progressive increase in prices






30. Summary of a corporation's financial condition






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






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






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






34. A formal contract to repay borrowed money with interest at fixed intervals






35. US treasury security that matures in 2 & 5 & or 10 years






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






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






38. Investors who are afraid to make investments






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






40. 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.'






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. 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.






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






44. The credit union term for a savings account.






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






46. Bold and high-risk investments






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






48. Brokers who provided little or no information to clients






49. Wall Street Journal and Barron's






50. The credit union term for a savings account.