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. Brokers who provided little or no information to clients






3. Bonds designed for investors wanting to protect again inflation losses






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






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






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






7. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.






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






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






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






11. 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.






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






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






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






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






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






17. The profit from an investment.






18. 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.






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






20. Companies that provide extensive financial data to clients






21. Property consisting of houses and land






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






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






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






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






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






27. People trained to give investment advise based on your goals & age & lifestyle & etc






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






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






30. The credit union term for a checking account.






31. A unit of ownership in a corporation






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






33. Newspapers list of securities






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






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






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






37. The credit union term for a checking account.






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






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






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






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






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






43. 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.






44. Debt obligations of corporations






45. Summary of a corporation's financial condition






46. People trained to give investment advise based on your goals & age & lifestyle & etc






47. 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.






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






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






50. Another term for budget