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






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






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






4. Debt obligations of state or local governments






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






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






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






8. Bold and high-risk investments






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






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






11. The amount of money someone is willing to loan you.






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






13. 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.






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






15. Investors who take to take chances






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






17. A chosen pursuit - profession - or occupation






18. The credit union term for a savings account.






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






20. Standard and Poor's and Moody's






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






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






23. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






28. Expenses that are not fixed.






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






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






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






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






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






34. The place where stocks are bought and sold.






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






36. The amount a corporation borrowed in a bond situation






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






38. Brokers who provided little or no information to clients






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






40. Newspapers list of securities






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






42. Investment choices that will be held for long periods






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






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






45. 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.






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






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






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






49. Debt obligations of corporations






50. 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.'