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. Bonds designed for investors wanting to protect again inflation losses






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






3. Merrill Lynch & Fidelity Investments & American Express






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






5. 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.






6. Investors who are afraid to make investments






7. Investment choices that will be held for long periods






8. Investing with a series of regular payments; usually associated with life insurance companies






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






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






11. The credit union term for a checking account.






12. Companies that provide extensive financial data to clients






13. The profit from an investment.






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






15. 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.






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






17. Investors who are afraid to make investments






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






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






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






21. Another term for budget






22. A chosen pursuit - profession - or occupation






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






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






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






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. Newspapers list of securities






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






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






30. The place where stocks are bought and sold.






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






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






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






34. Investors who take to take chances






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






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






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






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






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






40. A chosen pursuit - profession - or occupation






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






42. 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.






43. Brokers who provided little or no information to clients






44. Summary of a corporation's financial condition






45. Standard and Poor's and Moody's






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






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






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






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






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