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. Brokers who provide clients with analysis and opinions






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






3. Things that add comfort and pleasure to your life but you can live without if you need to.






4. Merrill Lynch & Fidelity Investments & American Express






5. Brokers who provide clients with analysis and opinions






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






7. Investors who are afraid to make investments






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






9. Brokers who provided little or no information to clients






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






11. Bold and high-risk investments






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






13. Collection of investments






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






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






16. 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.






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






18. Summary of a corporation's financial condition






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






20. The amount a corporation borrowed in a bond situation






21. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.






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






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






24. The entire amount of money you owe to lenders






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






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






27. A general and progressive increase in prices






28. Summary of a corporation's financial condition






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






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






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






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






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






34. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






38. 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.






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






40. Another term for budget






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






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






43. A general and progressive increase in prices






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






45. The place where stocks are bought and sold.






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






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






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






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






50. US treasury security that matures in 30 years