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. Movement of money you receive and the money you spend






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






3. A technique used for estimating the number of years required to double your money at a given rate






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






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






6. Bold and high-risk investments






7. Business Weekly & Forbes & Money






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






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






10. Newspapers list of securities






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






12. Debt obligations of state or local governments






13. 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.






14. The process of dealing with the chance of a potential personal or financial loss.






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






16. US treasury security that matures in 30 years






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






18. Earning interest on interest.






19. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






20. The amount a corporation borrowed in a bond situation






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






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






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






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






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






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






27. Merrill Lynch & Fidelity Investments & American Express






28. Collection of investments






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






30. A general and progressive increase in prices






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






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






33. Wall Street Journal and Barron's






34. Charles Schwab & TD Ameritrade & E*TRADE






35. A technique used for estimating the number of years required to double your money at a given rate






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






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






38. The profit from an investment.






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






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






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






42. Regular and planned investments






43. The unique passcode number you use to get access to your savings and/or checking account






44. The amount a corporation borrowed in a bond situation






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






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






47. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






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






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






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