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






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






3. Regular and planned investments






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






5. A spending plan for managing money during a given period of time.






6. 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.'






7. 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.






8. The amount a corporation borrowed in a bond situation






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






10. US treasury security that matures in 30 years






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






12. Collection of investments






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






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






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






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






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






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






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






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






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






22. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






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






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






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






30. 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.






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






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






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






34. Wall Street Journal and Barron's






35. 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.






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






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






38. A detailed record of your personal credit and financial transactions.






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






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






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






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






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






44. Newspapers list of securities






45. Companies that provide extensive financial data to clients






46. Charles Schwab & TD Ameritrade & E*TRADE






47. Property consisting of houses and land






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






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






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