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. Collection of investments






2. Associated with owning stock of similar groups of businesses






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






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






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






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






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






8. Regular and planned investments






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






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






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






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






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






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






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






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






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






18. Investment choices that will be held for long periods






19. Associated with owning stock of only one company






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






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






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






23. Investing with a series of regular payments; usually associated with life insurance companies






24. Investors who take to take chances






25. Debt obligations of state or local governments






26. Brokers who provided little or no information to clients






27. Associated with owning stock of only one company






28. The amount a corporation borrowed in a bond situation






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






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






31. Bold and high-risk investments






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






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






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






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






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






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






38. The chance that an investment's value will decrease






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






40. Brokers who provide clients with analysis and opinions






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






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






43. 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.






44. Merrill Lynch & Fidelity Investments & American Express






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






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






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






48. Summary of a corporation's financial condition






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






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