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






2. US treasury security that matures in 30 years






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






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






5. Business Weekly & Forbes & Money






6. Brokers who provide clients with analysis and opinions






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






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






9. Standard and Poor's and Moody's






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






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






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






13. Expenses that aren't paid every month and can be either fixed or variable.






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






15. A payroll deduction collected by employers by law and sent to the state government to support state services.






16. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






21. Investors who are afraid to make investments






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






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






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






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






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






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






28. Property consisting of houses and land






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






30. A unit of ownership in a corporation






31. Associated with owning stock of similar groups of businesses






32. Debt obligations of corporations






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






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






35. 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.






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






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






38. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.






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






40. 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.






41. Brokers who provided little or no information to clients






42. 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.'






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






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






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






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






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






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






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






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