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






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






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






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






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






6. The amount a corporation borrowed in a bond situation






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






8. Business Weekly & Forbes & Money






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






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






11. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






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






13. Business Weekly & Forbes & Money






14. Charles Schwab & TD Ameritrade & E*TRADE






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






16. The profit from an investment.






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






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






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






20. A government sector that requires all public corporations to make annual reports available to their stockholders






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






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






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






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






25. Investors who take to take chances






26. Investment choices that will be held for long periods






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






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






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






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






31. A general and progressive increase in prices






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






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






34. Regular and planned investments






35. 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.






36. 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.






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






38. A chosen pursuit - profession - or occupation






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






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






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






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






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






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






45. Collection of investments






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






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






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






49. The amount of money someone is willing to loan you.






50. Wall Street Journal and Barron's