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






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






3. 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.'






4. 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.'






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






6. 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.






7. The setting aside of money for future use or other investments






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






9. Investors who are afraid to make investments






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






11. Debt obligations of corporations






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






13. The place where stocks are bought and sold.






14. Brokers who provide clients with analysis and opinions






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






16. Investors who take to take chances






17. 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.






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






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






20. US treasury security that matures in 30 years






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






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






23. The maximum amount an insurance company will pay if you file a claim.






24. The setting aside of money for future use or other investments






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






26. 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.






27. The credit union term for a savings account.






28. Movement of money you receive and the money you spend






29. The value of What is given up when you choose one option over another.






30. Summary of a corporation's financial condition






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






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






33. Companies that provide extensive financial data to clients






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






35. A general and progressive increase in prices






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






37. Pooling of money from many investors to buy a large & diverse selection of securities






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






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






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






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






42. 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.






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






44. Property consisting of houses and land






45. Merrill Lynch & Fidelity Investments & American Express






46. The credit union term for a savings account.






47. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date






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






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






50. Brokers who provide clients with analysis and opinions