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. Associated with owning stock of similar groups of businesses






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






3. 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.






4. Expenses that are not fixed.






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






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






7. Investors who take to take chances






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






9. US treasury security that matures in 30 years






10. Property consisting of houses and land






11. Summary of a corporation's financial condition






12. Bold and high-risk investments






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






14. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.






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






16. 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.






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






18. Brokers who provided little or no information to clients






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






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






21. Another term for budget






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. The place where stocks are bought and sold.






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






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






26. Earning interest on interest.






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






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






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






30. Investment choices that will be held for long periods






31. Another term for budget






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






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






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






35. Summary of a corporation's financial condition






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






37. A unit of ownership in a corporation






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






39. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.






40. Debt obligations of state or local governments






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






42. 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.






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






44. Collection of investments






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






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






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






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






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






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