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






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






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






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






5. A term that describes investments on which earnings are not taxed until retirement






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






7. Expenses that are not fixed.






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






9. Wall Street Journal and Barron's






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






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






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






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






14. 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.






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






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






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






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






19. The chance that inflation will rise faster than the rate of return on an investment






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






21. Property consisting of houses and land






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






23. Brokers who provided little or no information to clients






24. 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.






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






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






27. The amount a corporation borrowed in a bond situation






28. Associated with owning stock of similar groups of businesses






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






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






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






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






33. The place where stocks are bought and sold.






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






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






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






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






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






39. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25






40. A general and progressive increase in prices






41. Summary of a corporation's financial condition






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






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






44. The credit union term for a savings account.






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






46. The profit from an investment.






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






48. Merrill Lynch & Fidelity Investments & American Express






49. Earning interest on interest.






50. Investors who take to take chances