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






2. 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.






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






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






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






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






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






8. Regular and planned investments






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






10. The profit from an investment.






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






12. Bold and high-risk investments






13. Bold and high-risk investments






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






15. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.






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






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






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






19. The entire amount of money you owe to lenders






20. Another term for budget






21. 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.






22. Expenses that are not fixed.






23. The credit union term for a checking account.






24. Collection of investments






25. Fee on credit card for making charges above your credit limit.






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






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






28. Summary of a corporation's financial condition






29. Debt obligations of corporations






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






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






32. The amount a corporation borrowed in a bond situation






33. Investors who are afraid to make investments






34. Standard and Poor's and Moody's






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






36. Companies that provide extensive financial data to clients






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






38. The credit union term for a savings account.






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






40. Associated with owning stock of only one company






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






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






43. The place where stocks are bought and sold.






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






45. Property consisting of houses and land






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






47. Debt obligations of state or local governments






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






49. Earning interest on interest.






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