Test your basic knowledge |

Financial Literacy Basics

  • 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. A general and progressive increase in prices

2. Associated with owning stock of similar groups of businesses

3. The profit from an investment.

4. Investors who take to take chances

5. US treasury security that matures in 30 years

6. A government sector that requires all public corporations to make annual reports available to their stockholders

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

8. Bold and high-risk investments

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

10. The place where stocks are bought and sold.

11. Summary of a corporation's financial condition

12. A unit of ownership in a corporation

13. Business Weekly & Forbes & Money

14. The amount a corporation borrowed in a bond situation

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

16. Brokers who provided little or no information to clients

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

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

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

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

21. 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.

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

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

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

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

26. 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.

27. US treasury security that matures in 30 years

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

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

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

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

32. 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.

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

34. Wall Street Journal and Barron's

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

36. 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.

37. The process of dealing with the chance of a potential personal or financial loss.

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

39. Investors who take to take chances

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

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

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

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

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

45. Collection of investments

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

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

48. Regular and planned investments

49. Standard and Poor's and Moody's

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