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. Merrill Lynch & Fidelity Investments & American Express






2. Another term for budget






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






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






5. Debt obligations of corporations






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






7. The profit from an investment.






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






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






10. Earning interest on interest.






11. 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.






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






13. The credit union term for a checking account.






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






15. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






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






20. Collection of investments






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






22. Wall Street Journal and Barron's






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






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






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






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






27. The credit union term for a savings account.






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






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






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






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






32. The amount a corporation borrowed in a bond situation






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






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






35. Charles Schwab & TD Ameritrade & E*TRADE






36. Companies that provide extensive financial data to clients






37. A general and progressive increase in prices






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






39. Companies that provide extensive financial data to clients






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






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






42. Newspapers list of securities






43. Associated with owning stock of similar groups of businesses






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






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






46. Associated with owning stock of only one company






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






48. The credit union term for a savings account.






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






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