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. Property consisting of houses and land






3. Regular and planned investments






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






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






6. Maximum amount of credit a lender will extend to a customer.






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






8. 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.






9. Earning interest on interest.






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






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






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






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






14. Brokers who provide clients with analysis and opinions






15. Brokers who provide clients with analysis and opinions






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






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






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






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






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






21. Investment choices that will be held for long periods






22. Investment choices that will be held for long periods






23. Associated with owning stock of similar groups of businesses






24. 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.






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






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






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






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






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






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. Associated with owning stock of only one company






32. A unit of ownership in a corporation






33. Summary of a corporation's financial condition






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






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






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






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






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






39. Expenses that are not fixed.






40. Bold and high-risk investments






41. 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.






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






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






44. US treasury security that matures from a few days to one year






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






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






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






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






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






50. A chosen pursuit - profession - or occupation