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






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






3. Investment choices that will be held for long periods






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






5. Property consisting of houses and land






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






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






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






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






10. 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.






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






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






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






14. 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.






15. The entire amount of money you owe to lenders






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






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






18. A general and progressive increase in prices






19. Newspapers list of securities






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






21. Contacts to buy and sell commodities or stocks for a specific price on a specific date






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






23. Companies that provide extensive financial data to clients






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






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






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






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






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






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






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






31. The amount a corporation borrowed in a bond situation






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






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






34. Charles Schwab & TD Ameritrade & E*TRADE






35. People trained to give investment advise based on your goals & age & lifestyle & etc






36. 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.






37. Investors who take to take chances






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






39. 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.






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






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






42. The place where stocks are bought and sold.






43. Business Weekly & Forbes & Money






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






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






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






47. 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.'






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






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






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