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






2. Charles Schwab & TD Ameritrade & E*TRADE






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






4. Bold and high-risk investments






5. The amount a corporation borrowed in a bond situation






6. Collection of investments






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






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






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






10. 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.






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






12. 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.






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






14. The unique passcode number you use to get access to your savings and/or checking account






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






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






17. 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.






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






19. Companies that provide extensive financial data to clients






20. The profit from an investment.






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






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






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






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






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






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






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






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






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






30. A general and progressive increase in prices






31. Expenses that are not fixed.






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






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






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






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






36. The credit union term for a checking account.






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






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






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






40. 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.'






41. Debt obligations of state or local governments






42. Merrill Lynch & Fidelity Investments & American Express






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






44. Associated with owning stock of only one company






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






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






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






48. The place where stocks are bought and sold.






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






50. Earning interest on interest.