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






4. Summary of a corporation's financial condition






5. Brokers who provided little or no information to clients






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






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






8. Amount of money that is set aside for future purchases






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






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






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






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






13. Merrill Lynch & Fidelity Investments & American Express






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






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






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






17. Companies that provide extensive financial data to clients






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






19. The credit union term for a checking account.






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






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






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






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






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






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






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






28. 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.






29. A chosen pursuit - profession - or occupation






30. The credit union term for a checking account.






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






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






33. Standard and Poor's and Moody's






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






35. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.






36. Investors who are afraid to make investments






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






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






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






40. A general and progressive increase in prices






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






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






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






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






45. The maximum amount an insurance company will pay if you file a claim.






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






47. The entire amount of money you owe to lenders






48. A unit of ownership in a corporation






49. Associated with owning stock of only one company






50. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.