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






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






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






4. Brokers who provided little or no information to clients






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






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. US treasury security that matures in 30 years






8. The place where stocks are bought and sold.






9. Debt obligations of corporations






10. The profit from an investment.






11. Brokers who provide clients with analysis and opinions






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






13. A summary of a person's borrowing and repayment history.






14. Bold and high-risk investments






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






16. Expenses that are not fixed.






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






18. Companies that provide extensive financial data to clients






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






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






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






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






23. A unit of ownership in a corporation






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






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






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






27. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






28. Property consisting of houses and land






29. Investors who are afraid to make investments






30. US treasury security that matures in 30 years






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






32. The increase or decrease in the original purchase price of an investment over a period of time.






33. 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.'






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






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






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






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






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






39. A clause included in many credit card company agreements that allows a credit card company to increase your interest rate if you make just one late payment.






40. Companies that provide extensive financial data to clients






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






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






43. Collection of investments






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






45. The amount a corporation borrowed in a bond situation






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






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






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






49. Losses in an investment as a result of the business cycle






50. The increase or decrease in the original purchase price of an investment over a period of time.