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






2. Brokers who provided little or no information to clients






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






4. Associated with owning stock of only one company






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






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






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






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






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






10. Investment choices that will be held for long periods






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






12. Investors who are afraid to make investments






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






14. Business Weekly & Forbes & Money






15. A goal to be achieved within the next three months.






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






17. Charles Schwab & TD Ameritrade & E*TRADE






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






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






20. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.






21. Companies that provide extensive financial data to clients






22. Merrill Lynch & Fidelity Investments & American Express






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






24. The willingness to give up something you want now in return for something better in the future.






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






26. A unit of ownership in a corporation






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






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






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






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






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






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






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






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






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






37. The profit from an investment.






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






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






40. Earning interest on interest.






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






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






43. Business Weekly & Forbes & Money






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






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






46. Regular and planned investments






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






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






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






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