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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. The entire amount of money you owe to lenders






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






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






4. Investment choices that will be held for long periods






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






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






7. The place where stocks are bought and sold.






8. 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.






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






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






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






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






13. Associated with owning stock of similar groups of businesses






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






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






16. A chosen pursuit - profession - or occupation






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






18. The amount a corporation borrowed in a bond situation






19. 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.'






20. A unit of ownership in a corporation






21. Debt obligations of state or local governments






22. A chosen pursuit - profession - or occupation






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






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






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






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






27. 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.






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






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






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






31. The credit union term for a savings account.






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






33. Collection of investments






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






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






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






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






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






39. The credit union term for a checking account.






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






41. 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.






42. Associated with owning stock of similar groups of businesses






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






44. Investors who are afraid to make investments






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






46. Investment choices that will be held for long periods






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






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






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






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







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Can you answer 50 questions in 15 minutes?


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