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






2. A general and progressive increase in prices






3. Investors who take to take chances






4. Standard and Poor's and Moody's






5. Companies that provide extensive financial data to clients






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






7. 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.'






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






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






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






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






12. US treasury security that matures in 30 years






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






14. A chosen pursuit - profession - or occupation






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






16. Associated with owning stock of similar groups of businesses






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






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






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






20. Brokers who provide clients with analysis and opinions






21. Associated with owning stock of only one company






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






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






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






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






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






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






28. The entire amount of money you owe to lenders






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






30. A form of bankruptcy that allows you to erase most of your debt.






31. Investors who are afraid to make investments






32. Bold and high-risk investments






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






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






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






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






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






38. The credit union term for a checking account.






39. The profit from an investment.






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






41. 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.






42. Merrill Lynch & Fidelity Investments & American Express






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






44. Associated with owning stock of only one company






45. The place where stocks are bought and sold.






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






47. 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.






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






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






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