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. Associated with owning stock of only one company






2. Summary of a corporation's financial condition






3. The amount a corporation borrowed in a bond situation






4. 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.






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






6. Investors who are afraid to make investments






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






8. A spending plan for managing money during a given period of time.






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






10. The unique passcode number you use to get access to your savings and/or checking account






11. Debt obligations of state or local governments






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






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






14. A unit of ownership in a corporation






15. Debt obligations of corporations






16. 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.






17. The amount a corporation borrowed in a bond situation






18. 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.






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






20. Investment choices that will be held for long periods






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






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






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






24. Expenses that are not fixed.






25. The place where stocks are bought and sold.






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






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






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






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






30. Merrill Lynch & Fidelity Investments & American Express






31. Business Weekly & Forbes & Money






32. Newspapers list of securities






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






34. 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.






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






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






37. 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.






38. Summary of a corporation's financial condition






39. The entire amount of money you owe to lenders






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






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






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






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






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






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






46. Associated with owning stock of similar groups of businesses






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






48. Actions that the government might take that would reduce the value of an investment






49. 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.






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