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 formal contract to repay borrowed money with interest at fixed intervals






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






3. US treasury security that matures in 30 years






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






5. Investors who are afraid to make investments






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






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






8. The place where stocks are bought and sold.






9. A bank account against which the depositor can draw checks payable on demand.






10. Newspapers list of securities






11. Earning interest on interest.






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






13. Regular and planned investments






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






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






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






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 detailed record of your personal credit and financial transactions.






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






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






21. Property consisting of houses and land






22. People trained to give investment advise based on your goals & age & lifestyle & etc






23. Fee on credit card for making charges above your credit limit.






24. Associated with owning stock of similar groups of businesses






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






26. Merrill Lynch & Fidelity Investments & American Express






27. The amount a corporation borrowed in a bond situation






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






29. Brokers who provided little or no information to clients






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






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






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






33. The entire amount of money you owe to lenders






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






35. Another term for budget






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






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






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






39. Bold and high-risk investments






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






41. People trained to give investment advise based on your goals & age & lifestyle & etc






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






43. A unit of ownership in a corporation






44. 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.






45. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller






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






47. Debt obligations of state or local governments






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






49. Associated with owning stock of only one company






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