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






2. Debt obligations of corporations






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






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






5. Property consisting of houses and land






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






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






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






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






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






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






12. Newspapers list of securities






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






14. A chosen pursuit - profession - or occupation






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






16. Associated with owning stock of similar groups of businesses






17. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'






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






19. Standard and Poor's and Moody's






20. 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.






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






22. 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.






23. A unit of ownership in a corporation






24. The credit union term for a checking account.






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






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






27. The amount a corporation borrowed in a bond situation






28. Investors who are afraid to make investments






29. Coins & art & memorabilia or other items that are popular from time to time






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






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






32. Newspapers list of securities






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






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






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






36. Associated with owning stock of only one company






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






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






39. Investors who take to take chances






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






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






42. 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.






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






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






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






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






47. Collection of investments






48. Brokers who provide clients with analysis and opinions






49. Summary of a corporation's financial condition






50. The profit from an investment.