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






2. The amount a corporation borrowed in a bond situation






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






4. Debt obligations of corporations






5. 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.






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






7. 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.






8. Property consisting of houses and land






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






10. Expenses that are not fixed.






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






12. A general and progressive increase in prices






13. Charles Schwab & TD Ameritrade & E*TRADE






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






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






16. Merrill Lynch & Fidelity Investments & American Express






17. Summary of a corporation's financial condition






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






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






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






21. Wall Street Journal and Barron's






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






23. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






24. The entire amount of money you owe to lenders






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






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






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






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






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






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






31. The credit union term for a checking account.






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






33. Bold and high-risk investments






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






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






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






37. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.






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






39. Investment choices that will be held for long periods






40. The place where stocks are bought and sold.






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






42. The entire amount of money you owe to lenders






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






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






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






46. 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.






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






48. US treasury security that matures in 30 years






49. The profit from an investment.






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