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. Investors who take to take chances






2. Bold and high-risk investments






3. Wall Street Journal and Barron's






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






5. Summary of a corporation's financial condition






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






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






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






9. Another term for budget






10. 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.






11. The credit union term for a checking account.






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






13. The profit from an investment.






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






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






16. Merrill Lynch & Fidelity Investments & American Express






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






18. US treasury security that matures in 30 years






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






20. 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.






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






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






24. Property consisting of houses and land






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






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






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






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






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






30. Debt obligations of state or local governments






31. Merrill Lynch & Fidelity Investments & American Express






32. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






33. A chosen pursuit - profession - or occupation






34. Associated with owning stock of only one company






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






36. 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.






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






38. Business Weekly & Forbes & Money






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






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






41. Regular and planned investments






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






43. The credit union term for a savings account.






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






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






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






47. The place where stocks are bought and sold.






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






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






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