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






2. Earning interest on interest.






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






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






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






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






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






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






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






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






11. Another term for budget






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






13. A form of bankruptcy that allows you to erase most of your debt.






14. 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.






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






16. Brokers who provide clients with analysis and opinions






17. The value of What is given up when you choose one option over another.






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






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






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






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 profit from an investment.






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






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






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






26. 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.






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






28. Expenses that are not fixed.






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






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






31. Merrill Lynch & Fidelity Investments & American Express






32. US treasury security that matures in 30 years






33. Regular and planned investments






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






35. Brokers who provided little or no information to clients






36. The place where stocks are bought and sold.






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






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






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






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






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






42. Summary of a corporation's financial condition






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






44. The belief - qualities - or standards that you consider important or desirable.






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






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






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






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






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






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