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






2. 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.






3. Debt obligations of corporations






4. Earning interest on interest.






5. 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.






6. 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.






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






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






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






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






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






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






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






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






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






16. 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.






17. A goal to be achieved within the next three months.






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






19. Contacts to buy and sell commodities or stocks for a specific price on a specific date






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






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






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






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






24. The value of What is given up when you choose one option over another.






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






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






27. Bold and high-risk investments






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






29. Debt obligations of state or local governments






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






31. 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.'






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






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






34. A chosen pursuit - profession - or occupation






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






36. Investment choices that will be held for long periods






37. Earning interest on interest.






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






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






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






41. Investment choices that will be held for long periods






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






43. A chosen pursuit - profession - or occupation






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






45. The entire amount of money you owe to lenders






46. Charles Schwab & TD Ameritrade & E*TRADE






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






48. Wall Street Journal and Barron's






49. Companies that provide extensive financial data to clients






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