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






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






3. Associated with owning stock of only one company






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






5. Bold and high-risk investments






6. Standard and Poor's and Moody's






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






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






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






10. 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.






11. Associated with owning stock of only one company






12. A chosen pursuit - profession - or occupation






13. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.






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






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






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






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






18. Expenses that are not fixed.






19. Charles Schwab & TD Ameritrade & E*TRADE






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






21. The process of dealing with the chance of a potential personal or financial loss.






22. The amount a corporation borrowed in a bond situation






23. Property consisting of houses and land






24. The profit from an investment.






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






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






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






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






29. The place where stocks are bought and sold.






30. Regular and planned investments






31. A chosen pursuit - profession - or occupation






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






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






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






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






36. Wall Street Journal and Barron's






37. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.






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






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






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






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






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






43. Brokers who provided little or no information to clients






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






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






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






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






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






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






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