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. Newspapers list of securities






2. A unit of ownership in a corporation






3. Charles Schwab & TD Ameritrade & E*TRADE






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






5. 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.






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






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






8. Earning interest on interest.






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






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






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






12. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






13. The place where stocks are bought and sold.






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






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






16. Debt obligations of state or local governments






17. Merrill Lynch & Fidelity Investments & American Express






18. The profit from an investment.






19. Newspapers list of securities






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






21. Summary of a corporation's financial condition






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






23. The entire amount of money you owe to lenders






24. 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.






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






26. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25






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






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






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






30. Merrill Lynch & Fidelity Investments & American Express






31. Bold and high-risk investments






32. Companies that provide extensive financial data to clients






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






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






35. 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.






36. The maximum amount an insurance company will pay if you file a claim.






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






38. The credit union term for a savings account.






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






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






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






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






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






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






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






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






47. Investment choices that will be held for long periods






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






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






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