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. Associated with owning stock of similar groups of businesses






2. Property consisting of houses and land






3. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






4. The portion of the profits paid to the shareholders of a company.






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






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






7. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






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






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






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






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






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






17. Business Weekly & Forbes & Money






18. 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.






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






20. The profit from an investment.






21. Expenses that are not fixed.






22. Wall Street Journal and Barron's






23. Regular and planned investments






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






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






26. Smaller decisions that can result from a major decision.






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






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






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






30. A unit of ownership in a corporation






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






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






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






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






35. Brokers who provided little or no information to clients






36. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.






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






38. An amount that credit card companies can charge for the use of a credit card.






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






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






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






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






43. Investment choices that will be held for long periods






44. An amount that credit card companies can charge for the use of a credit card.






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






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






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






48. Newspapers list of securities






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






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