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






2. The entire amount of money you owe to lenders






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






4. Brokers who provide clients with analysis and opinions






5. 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.






6. 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.






7. The amount a corporation borrowed in a bond situation






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






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






10. Business Weekly & Forbes & Money






11. A general and progressive increase in prices






12. Debt obligations of state or local governments






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






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






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






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






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






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






19. Standard and Poor's and Moody's






20. Newspapers list of securities






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






22. 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.






23. Companies that provide extensive financial data to clients






24. The credit union term for a savings account.






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






26. 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.






27. Associated with owning stock of similar groups of businesses






28. Another term for budget






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






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






31. Expenses that are not fixed.






32. Business Weekly & Forbes & Money






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






34. The chance that an investment's value will decrease






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






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






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






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






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






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






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






42. The setting aside of money for future use or other investments






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. 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.






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






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






47. 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.






48. Regular and planned investments






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






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