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. Summary of a corporation's financial condition






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






3. The probability that injury - damage - or loss will occur.






4. The profit from an investment.






5. Property consisting of houses and land






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






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






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






9. Regular and planned investments






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






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






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






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






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






15. The credit union term for a checking account.






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






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






18. Debt obligations of state or local governments






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






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






21. Brokers who provided little or no information to clients






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






23. Merrill Lynch & Fidelity Investments & American Express






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






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






26. The amount of money someone is willing to loan you.






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






28. Expenses that are not fixed.






29. Associated with owning stock of similar groups of businesses






30. Standard and Poor's and Moody's






31. Brokers who provide clients with analysis and opinions






32. Bold and high-risk investments






33. Investors who take to take chances






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






35. A general and progressive increase in prices






36. Standard and Poor's and Moody's






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






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






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






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






41. US treasury security that matures in 30 years






42. 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.






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






44. Charles Schwab & TD Ameritrade & E*TRADE






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






46. The credit union term for a savings account.






47. Investors who are afraid to make investments






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






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






50. Brokers who provided little or no information to clients