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. A summary of a person's borrowing and repayment history.






3. The amount a corporation borrowed in a bond situation






4. Charles Schwab & TD Ameritrade & E*TRADE






5. Wall Street Journal and Barron's






6. The increase or decrease in the original purchase price of an investment over a period of time.






7. Another term for budget






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






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






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






11. 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.






12. A payroll deduction collected by employers by law and sent to the state government to support state services.






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






15. Brokers who provided little or no information to clients






16. 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.






17. 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.






18. Associated with owning stock of similar groups of businesses






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






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






21. Debt obligations of corporations






22. Property consisting of houses and land






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






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






25. Earning interest on interest.






26. Movement of money you receive and the money you spend






27. 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.






28. A unit of ownership in a corporation






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






30. Investment choices that will be held for long periods






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






32. Conservative investing; used when you have 'excess' savings






33. A general and progressive increase in prices






34. US treasury security that matures in 30 years






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






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






37. Brokers who provided little or no information to clients






38. Investors who take to take chances






39. Investors who take to take chances






40. Uncontrollable and unpredictable events that cause an investment to lose value






41. Debt obligations of state or local governments






42. Merrill Lynch & Fidelity Investments & American Express






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






44. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date






45. The entire amount of money you owe to lenders






46. 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.






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






48. The probability that injury - damage - or loss will occur.






49. Investors who are afraid to make investments






50. Business Weekly & Forbes & Money