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






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






3. A unit of ownership in a corporation






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






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






6. 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.






7. 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.






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






9. 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.






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






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






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






13. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.






14. Standard and Poor's and Moody's






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






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






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






18. Debt obligations of corporations






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






20. Charles Schwab & TD Ameritrade & E*TRADE






21. The entire amount of money you owe to lenders






22. Wall Street Journal and Barron's






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






24. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.






25. The credit union term for a savings account.






26. Losses in an investment as a result of the business cycle






27. Associated with owning stock of only one company






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






29. Debt obligations of corporations






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






31. 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.






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






33. Losses in an investment as a result of the business cycle






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






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






36. A formal contract to repay borrowed money with interest at fixed intervals






37. Debt obligations of state or local governments






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






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






40. 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.






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






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






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






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






45. Business Weekly & Forbes & Money






46. Brokers who provide clients with analysis and opinions






47. Newspapers list of securities






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






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






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