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






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






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






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






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






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






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






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






9. 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.






10. Another term for budget






11. 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.






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






13. US treasury security that matures in 30 years






14. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






18. Wall Street Journal and Barron's






19. Summary of a corporation's financial condition






20. 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.






21. The credit union term for a savings account.






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






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






24. The profit from an investment.






25. Expenses that aren't paid every month and can be either fixed or variable.






26. The willingness to give up something you want now in return for something better in the future.






27. Investors who take to take chances






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






29. A certificate documenting the shareholder's ownership in the corporation






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






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






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






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






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






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






36. The credit union term for a checking account.






37. Associated with owning stock of only one company






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






39. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.






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






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






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






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






44. Brokers who provide clients with analysis and opinions






45. The profit from an investment.






46. Merrill Lynch & Fidelity Investments & American Express






47. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.






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






49. Debt obligations of state or local governments






50. Regular and planned investments