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






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






4. Investors who take to take chances






5. Business Weekly & Forbes & Money






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






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






8. 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.






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






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






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






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






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






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






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






16. The credit union term for a savings account.






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






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






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






20. The entire amount of money you owe to lenders






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






22. Companies that provide extensive financial data to clients






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






24. Debt obligations of state or local governments






25. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






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






31. The profit from an investment.






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






33. Investment choices that will be held for long periods






34. 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.






35. Regular and planned investments






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






37. Bold and high-risk investments






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






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






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






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






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






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






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






45. Regular and planned investments






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






47. The amount a corporation borrowed in a bond situation






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






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






50. US treasury security that matures from a few days to one year