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. 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.






2. Pooling of money from many investors to buy a large & diverse selection of securities






3. 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.






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






5. 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.






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






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






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






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






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






11. A goal to be achieved within the next three months.






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






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






14. A unit of ownership in a corporation






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






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






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






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






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






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






21. Associated with owning stock of only one company






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






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






24. Expenses that are not fixed.






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






26. Debt obligations of corporations






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






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






29. A chosen pursuit - profession - or occupation






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






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






32. Regular and planned investments






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






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






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






36. 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.






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






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






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






40. 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.






41. The maximum amount an insurance company will pay if you file a claim.






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






43. US treasury security that matures in 30 years






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






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






46. Charles Schwab & TD Ameritrade & E*TRADE






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






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






49. Companies that provide extensive financial data to clients






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