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. Regular and planned investments






2. Investment choices that will be held for long periods






3. Property consisting of houses and land






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






5. Companies that provide extensive financial data to clients






6. Expenses that are not fixed.






7. Earning interest on interest.






8. Standard and Poor's and Moody's






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






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






11. 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.






12. Charles Schwab & TD Ameritrade & E*TRADE






13. 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.






14. Another term for budget






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






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






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






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






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






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






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






22. The amount a corporation borrowed in a bond situation






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






24. A general and progressive increase in prices






25. Debt obligations of state or local governments






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






27. The entire amount of money you owe to lenders






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






29. A unit of ownership in a corporation






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






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






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






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






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






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






36. The date on which the borrowed money must be repaid






37. Debt obligations of corporations






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






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






40. Associated with owning stock of similar groups of businesses






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






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






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






44. The date on which the borrowed money must be repaid






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






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






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






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






49. Companies that provide extensive financial data to clients






50. Business Weekly & Forbes & Money