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. Companies that provide extensive financial data to clients






2. The place where stocks are bought and sold.






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






4. A general and progressive increase in prices






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






6. A chosen pursuit - profession - or occupation






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






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






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






10. Debt obligations of corporations






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






12. Companies that provide extensive financial data to clients






13. Merrill Lynch & Fidelity Investments & American Express






14. Investment choices that will be held for long periods






15. 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.






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






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






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






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






20. Merrill Lynch & Fidelity Investments & American Express






21. Investment choices that will be held for long periods






22. 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.






23. The date on which the borrowed money must be repaid






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






25. A detailed record of your personal credit and financial transactions.






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






27. 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.






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






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






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






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. 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.






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






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






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






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






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






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






39. Regular and planned investments






40. Brokers who provide clients with analysis and opinions






41. Standard and Poor's and Moody's






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






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






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






45. Associated with owning stock of only one company






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






47. 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.






48. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.






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






50. Regular and planned investments