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






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






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






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






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






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






7. Wall Street Journal and Barron's






8. The credit union term for a savings account.






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






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






11. Summary of a corporation's financial condition






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






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






14. Investors who are afraid to make investments






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






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






17. A chosen pursuit - profession - or occupation






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






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






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






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






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






23. Investment choices that will be held for long periods






24. Collection of investments






25. 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.






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






27. The entire amount of money you owe to lenders






28. A unit of ownership in a corporation






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






30. 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.






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






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






33. Brokers who provided little or no information to clients






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






35. Companies that provide extensive financial data to clients






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






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






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






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






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






41. Bold and high-risk investments






42. 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.






43. Expenses that are not fixed.






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






45. Debt obligations of state or local governments






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






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






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






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






50. Regular and planned investments