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. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






5. Newspapers list of securities






6. Earning interest on interest.






7. Investment choices that will be held for long periods






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






9. Wall Street Journal and Barron's






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






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






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






13. Business Weekly & Forbes & Money






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






15. Associated with owning stock of only one company






16. Brokers who provided little or no information to clients






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






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






19. The profit from an investment.






20. Companies that provide extensive financial data to clients






21. Companies that provide extensive financial data to clients






22. Merrill Lynch & Fidelity Investments & American Express






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






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






25. Investment choices that will be held for long periods






26. Earning interest on interest.






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






28. The amount of money someone is willing to loan you.






29. The place where stocks are bought and sold.






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






31. The profit from an investment.






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






33. Property consisting of houses and land






34. 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.






35. Regular and planned investments






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






37. Conservative investing; used when you have 'excess' savings






38. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'






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






40. Another term for budget






41. A unit of ownership in a corporation






42. Brokers who provide clients with analysis and opinions






43. 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.






44. Debt obligations of state or local governments






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






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






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






48. Movement of money you receive and the money you spend






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






50. A spending plan for managing money during a given period of time.