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. 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.






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






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






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






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






6. The credit union term for a savings account.






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






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






9. Charles Schwab & TD Ameritrade & E*TRADE






10. Companies that provide extensive financial data to clients






11. A spending plan for managing money during a given period of time.






12. Associated with owning stock of similar groups of businesses






13. Another term for budget






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






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






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






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






18. Investors who are afraid to make investments






19. 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.






20. The profit from an investment.






21. A chosen pursuit - profession - or occupation






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






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






24. US treasury security that matures in 30 years






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






26. Business Weekly & Forbes & Money






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






28. A unit of ownership in a corporation






29. Brokers who provide clients with analysis and opinions






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






31. The entire amount of money you owe to lenders






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






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






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






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






36. Standard and Poor's and Moody's






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






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






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






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






41. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.






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






43. The credit union term for a checking account.






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






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






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






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






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






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






50. The entire amount of money you owe to lenders