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






2. A chosen pursuit - profession - or occupation






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






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






5. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.






6. Collection of investments






7. US treasury security that matures in 30 years






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






9. Bonds designed for investors wanting to protect again inflation losses






10. The amount a corporation borrowed in a bond situation






11. The credit union term for a savings account.






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






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






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






15. Merrill Lynch & Fidelity Investments & American Express






16. Investors who take to take chances






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






18. Investors who take to take chances






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






20. Movement of money you receive and the money you spend






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






22. Associated with owning stock of only one company






23. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.






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






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






26. People trained to give investment advise based on your goals & age & lifestyle & etc






27. 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.






28. 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.






29. 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.






30. Debt obligations of corporations






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






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






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






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






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






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






37. 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.






38. Standard and Poor's and Moody's






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






40. Earning interest on interest.






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






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






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






44. Regular and planned investments






45. Collection of investments






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






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






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






49. Investors who are afraid to make investments






50. Expenses that are not fixed.