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. 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.






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






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






4. Bold and high-risk investments






5. Newspapers list of securities






6. Merrill Lynch & Fidelity Investments & American Express






7. The entire amount of money you owe to lenders






8. Wall Street Journal and Barron's






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






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






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






12. The credit union term for a savings account.






13. Investors who take to take chances






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






15. Fee on credit card for making charges above your credit limit.






16. A chosen pursuit - profession - or occupation






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






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. Companies that provide extensive financial data to clients






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






21. 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.






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






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






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






25. Summary of a corporation's financial condition






26. Merrill Lynch & Fidelity Investments & American Express






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






28. The entire amount of money you owe to lenders






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






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






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






32. Brokers who provided little or no information to clients






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






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






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






36. The place where stocks are bought and sold.






37. Brokers who provide clients with analysis and opinions






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






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






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






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






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






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






44. Debt obligations of state or local governments






45. A general and progressive increase in prices






46. The amount a corporation borrowed in a bond situation






47. Business Weekly & Forbes & Money






48. A unit of ownership in a corporation






49. The setting aside of money for future use or other investments






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