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. Business Weekly & Forbes & Money






2. Newspapers list of securities






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






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






5. 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.






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






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






8. Reducing investment risk by putting money in several different types of investments.






9. Regular and planned investments






10. Low-priced stocks of small companies that have no track record






11. The credit union term for a savings account.






12. The amount a corporation borrowed in a bond situation






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






14. Summary of a corporation's financial condition






15. Associated with owning stock of only one company






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






17. A general and progressive increase in prices






18. Standard and Poor's and Moody's






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






20. Investors who take to take chances






21. Collection of investments






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






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






24. Earning interest on interest.






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






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






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






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






29. Wall Street Journal and Barron's






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






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






32. Investment choices that will be held for long periods






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






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






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






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






37. 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.






38. 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.






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






40. The profit from an investment.






41. A chosen pursuit - profession - or occupation






42. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






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






48. 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.






49. Debt obligations of state or local governments






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