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






2. A technique used for estimating the number of years required to double your money at a given rate






3. 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.






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






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






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






9. The place where stocks are bought and sold.






10. 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.






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






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






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






14. Investors who take to take chances






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






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






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






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






19. Charles Schwab & TD Ameritrade & E*TRADE






20. The profit from an investment.






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






22. Business Weekly & Forbes & Money






23. Newspapers list of securities






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






25. 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.






26. Wall Street Journal and Barron's






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






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






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






30. A chosen pursuit - profession - or occupation






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






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






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






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






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






36. Collection of investments






37. Investment choices that will be held for long periods






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






39. Debt obligations of state or local governments






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






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






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






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






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






45. Brokers who provided little or no information to clients






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






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






48. A general and progressive increase in prices






49. Another term for budget






50. A general and progressive increase in prices