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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 unit of ownership in a corporation






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






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






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






5. Companies that provide extensive financial data to clients






6. Property consisting of houses and land






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. 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.






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






10. Debt obligations of state or local governments






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






12. Wall Street Journal and Barron's






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






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






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






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






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






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






19. The increase or decrease in the original purchase price of an investment over a period of time.






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






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






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






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






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






25. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.






26. 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.






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






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






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






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






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






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






33. 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.






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






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






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






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






38. The amount a corporation borrowed in a bond situation






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






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






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






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






43. Debt obligations of corporations






44. Another term for budget






45. 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.






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






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






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






49. Investment choices that will be held for long periods






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






Can you answer 50 questions in 15 minutes?



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