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. Debt obligations of corporations






3. The profit from an investment.






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






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






6. Merrill Lynch & Fidelity Investments & American Express






7. 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.






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






9. Bold and high-risk investments






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






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. The credit union term for a savings account.






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






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






15. Summary of a corporation's financial condition






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






17. A general and progressive increase in prices






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






19. 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.






20. Brokers who provided little or no information to clients






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






22. 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.






23. A chosen pursuit - profession - or occupation






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






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






26. 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.






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






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






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






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






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






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






33. 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.






34. Regular and planned investments






35. 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.






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






37. A unit of ownership in a corporation






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






39. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






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






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






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






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






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






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






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






50. 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.