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. 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.






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






4. US treasury security that matures in 30 years






5. Collection of investments






6. The amount a corporation borrowed in a bond situation






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






8. Brokers who provide clients with analysis and opinions






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






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






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






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






13. Investors who are afraid to make investments






14. 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.'






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






16. Associated with owning stock of similar groups of businesses






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






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






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






20. Business Weekly & Forbes & Money






21. Bold and high-risk investments






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






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






24. 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.






25. 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.






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






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






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






29. Property consisting of houses and land






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






31. The profit from an investment.






32. Brokers who provided little or no information to clients






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






34. 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.






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






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






37. 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.






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






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






40. A general and progressive increase in prices






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






42. Expenses that are not fixed.






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






44. Standard and Poor's and Moody's






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






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






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






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






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






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