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






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






3. Investors who are afraid to make investments






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






5. A summary of a person's borrowing and repayment history.






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






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






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






9. Newspapers list of securities






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






11. Merrill Lynch & Fidelity Investments & American Express






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






13. Investors who take to take chances






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






15. The entire amount of money you owe to lenders






16. Expenses that aren't paid every month and can be either fixed or variable.






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






18. Earning interest on interest.






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






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






21. People trained to give investment advise based on your goals & age & lifestyle & etc






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






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






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






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






26. Expenses that aren't paid every month and can be either fixed or variable.






27. Associated with owning stock of only one company






28. A clause included in many credit card company agreements that allows a credit card company to increase your interest rate if you make just one late payment.






29. The profit from an investment.






30. Coins & art & memorabilia or other items that are popular from time to time






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






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






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






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






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






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






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






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






39. 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.






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






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






42. 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.






43. 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.






44. Newspapers list of securities






45. Standard and Poor's and Moody's






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






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






48. Collection of investments






49. US treasury security that matures in 30 years






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