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






2. Earning interest on interest.






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






4. Merrill Lynch & Fidelity Investments & American Express






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






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






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






8. The entire amount of money you owe to lenders






9. 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.'






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






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






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






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






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






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






16. The place where stocks are bought and sold.






17. Business Weekly & Forbes & Money






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






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






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






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






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






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






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






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






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. 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.






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






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






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






31. Investment choices that will be held for long periods






32. 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.






33. Associated with owning stock of similar groups of businesses






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






35. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.






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






37. Investors who are afraid to make investments






38. Merrill Lynch & Fidelity Investments & American Express






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






40. 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.






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






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






43. The probability that injury - damage - or loss will occur.






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






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






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






47. Investors who are afraid to make investments






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






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






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