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 place where stocks are bought and sold.






2. The profit from an investment.






3. The amount a corporation pays at a fixed amount when repaying a bond






4. Property consisting of houses and land






5. Management of investment alternatives to maximize the growth of your portfolio






6. 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.






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






8. Associated with owning stock of only one company






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






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






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






12. The amount a corporation borrowed in a bond situation






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






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






15. The credit union term for a checking account.






16. A chosen pursuit - profession - or occupation






17. Associated with owning stock of similar groups of businesses






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






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






20. Regular and planned investments






21. The credit union term for a savings account.






22. A payroll deduction collected by employers by law and sent to the state government to support state services.






23. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.






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






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






26. Debt obligations of corporations






27. An amount that credit card companies can charge for the use of a credit card.






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






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






30. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.






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






32. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.






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






34. The entire amount of money you owe to lenders






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






36. Earning interest on interest.






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






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






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






40. The amount a corporation borrowed in a bond situation






41. Wall Street Journal and Barron's






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






43. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






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






45. A certificate documenting the shareholder's ownership in the corporation






46. Companies that provide extensive financial data to clients






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






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






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






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