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






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






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






4. Associated with owning stock of similar groups of businesses






5. 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.






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






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






8. Associated with owning stock of only one company






9. The amount a corporation borrowed in a bond situation






10. Charles Schwab & TD Ameritrade & E*TRADE






11. The place where stocks are bought and sold.






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






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






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






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






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






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






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






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






20. Collection of investments






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






22. Debt obligations of corporations






23. A formal contract to repay borrowed money with interest at fixed intervals






24. Regular and planned investments






25. Another term for budget






26. Expenses that are not fixed.






27. Business Weekly & Forbes & Money






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






29. Business Weekly & Forbes & Money






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






31. Collection of investments






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






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






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






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






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






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






38. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.






39. Wall Street Journal and Barron's






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






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






42. A chosen pursuit - profession - or occupation






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






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






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






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






47. Companies that provide extensive financial data to clients






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






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






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