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






2. 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.






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






4. Regular and planned investments






5. Another term for budget






6. Business Weekly & Forbes & Money






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






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






9. Investors who take to take chances






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






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






12. 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.






13. Collection of investments






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






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






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






17. 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.






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






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






20. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.






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






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






23. Expenses that are not fixed.






24. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






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






29. Debt obligations of corporations






30. Business Weekly & Forbes & Money






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






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






33. Expenses that are not fixed.






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






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






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






37. A summary of a person's borrowing and repayment history.






38. A summary of a person's borrowing and repayment history.






39. The credit union term for a savings account.






40. Investors who take to take chances






41. Companies that provide extensive financial data to clients






42. The profit from an investment.






43. Another term for budget






44. Earning interest on interest.






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






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






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






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






49. Associated with owning stock of similar groups of businesses






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