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






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






3. Investment choices that will be held for long periods






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






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






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






7. 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.






8. Standard and Poor's and Moody's






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






10. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






14. The entire amount of money you owe to lenders






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






16. 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.






17. Companies that provide extensive financial data to clients






18. 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.'






19. A general and progressive increase in prices






20. Business Weekly & Forbes & Money






21. 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.






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






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






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






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






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






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






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






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






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






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






32. Earning interest on interest.






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






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






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






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






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






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






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






40. Another term for budget






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






42. Investment choices that will be re-evaluated within a year or less






43. 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.






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






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






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






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






48. Brokers who provided little or no information to clients






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






50. Investment choices that will be held for long periods