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






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






3. Another term for budget






4. US treasury security that matures in 2 & 5 & or 10 years






5. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.






6. Collection of investments






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






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






9. The amount a corporation borrowed in a bond situation






10. Collection of investments






11. Debt obligations of corporations






12. The chance that an investment's value will decrease






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






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






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






16. Summary of a corporation's financial condition






17. Associated with owning stock of only one company






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






19. Regular and planned investments






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






21. A unit of ownership in a corporation






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






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






24. Investment choices that will be held for long periods






25. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller






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






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






28. A chosen pursuit - profession - or occupation






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






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






31. 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.'






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






33. 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.






34. Brokers who provided little or no information to clients






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






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






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






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






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






40. Business Weekly & Forbes & Money






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






42. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.






43. Charles Schwab & TD Ameritrade & E*TRADE






44. The credit union term for a savings account.






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






46. Investors who are afraid to make investments






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






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






49. The profit from an investment.






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