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






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






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






4. Wall Street Journal and Barron's






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






6. Associated with owning stock of only one company






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






8. 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.






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






10. 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.






11. Collection of investments






12. Merrill Lynch & Fidelity Investments & American Express






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






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






15. Regular and planned investments






16. The credit union term for a checking account.






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






18. 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.






19. Property consisting of houses and land






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






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






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






23. Brokers who provide clients with analysis and opinions






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






25. Associated with owning stock of similar groups of businesses






26. Investment choices that will be held for long periods






27. 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.'






28. The entire amount of money you owe to lenders






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






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






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






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






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






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






35. 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.






36. 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.






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






38. US treasury security that matures from a few days to one year






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






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






41. The use of long-term savings to earn a financial return






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






43. Bold and high-risk investments






44. Associated with owning stock of only one company






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






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






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






48. Summary of a corporation's financial condition






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






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