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






2. Merrill Lynch & Fidelity Investments & American Express






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






4. Collection of investments






5. Standard and Poor's and Moody's






6. Maximum amount of credit a lender will extend to a customer.






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






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






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






10. A chosen pursuit - profession - or occupation






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






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






13. A unit of ownership in a corporation






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






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






16. 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.






17. Debt obligations of state or local governments






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






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






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






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






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






23. 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.






24. Another term for budget






25. The amount a corporation borrowed in a bond situation






26. US treasury security that matures in 30 years






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






28. Investors who take to take chances






29. The amount a corporation borrowed in a bond situation






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






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






32. 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.






33. Debt obligations of corporations






34. The place where stocks are bought and sold.






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






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






37. Business Weekly & Forbes & Money






38. Brokers who provide clients with analysis and opinions






39. Coins & art & memorabilia or other items that are popular from time to time






40. 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.






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






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






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






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






45. Investors who take to take chances






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






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






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






49. 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.






50. 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.