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. A goal to be achieved within the next three months.






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






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






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






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






6. Associated with owning stock of only one company






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






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






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






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






11. Business Weekly & Forbes & Money






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






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






14. The credit union term for a savings account.






15. Regular and planned investments






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






17. 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.






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






19. Wall Street Journal and Barron's






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






21. Investment choices that will be held for long periods






22. A unit of ownership in a corporation






23. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






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






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






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






31. Investors who take to take chances






32. Debt obligations of corporations






33. Charles Schwab & TD Ameritrade & E*TRADE






34. Bold and high-risk investments






35. 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.






36. Companies that provide extensive financial data to clients






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






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






39. Investors who are afraid to make investments






40. The amount a corporation pays at a fixed amount when repaying a bond






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






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






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






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






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






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






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






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. US treasury security that matures in 30 years






50. Uncontrollable and unpredictable events that cause an investment to lose value