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






3. The credit union term for a savings account.






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






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






6. US treasury security that matures in 30 years






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






8. US treasury security that matures in 30 years






9. Summary of a corporation's financial condition






10. The amount a corporation borrowed in a bond situation






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






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






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






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






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






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






17. A general and progressive increase in prices






18. Debt obligations of corporations






19. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.






20. The chance that inflation will rise faster than the rate of return on an investment






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






22. Newspapers list of securities






23. The entire amount of money you owe to lenders






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






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






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






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






28. Investors who take to take chances






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






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






31. Merrill Lynch & Fidelity Investments & American Express






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






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






34. Newspapers list of securities






35. Things that add comfort and pleasure to your life but you can live without if you need to.






36. Earning interest on interest.






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






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






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






40. The profit from an investment.






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






42. The chance that inflation will rise faster than the rate of return on an investment






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






44. A chosen pursuit - profession - or occupation






45. A chosen pursuit - profession - or occupation






46. A general and progressive increase in prices






47. Summary of a corporation's financial condition






48. Companies that provide extensive financial data to clients






49. 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.






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