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






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






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






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






5. The credit union term for a checking account.






6. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.






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






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






9. Investment choices that will be re-evaluated within a year or less






10. 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.






11. Companies that provide extensive financial data to clients






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






13. 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.






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






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






16. 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.






17. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'






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






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






20. The credit union term for a savings account.






21. Standard and Poor's and Moody's






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






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






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






25. Newspapers list of securities






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






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






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






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






30. 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.






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






32. Wall Street Journal and Barron's






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






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






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






36. 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.






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






38. Newspapers list of securities






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






40. Charles Schwab & TD Ameritrade & E*TRADE






41. Summary of a corporation's financial condition






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






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






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






45. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.






46. 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.






47. The belief - qualities - or standards that you consider important or desirable.






48. Debt obligations of state or local governments






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






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