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 profit from an investment.






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






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






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






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






6. The entire amount of money you owe to lenders






7. Brokers who provide clients with analysis and opinions






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






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






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






11. Newspapers list of securities






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






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






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






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






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






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






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






19. 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.






20. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






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






25. Regular and planned investments






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






27. The amount a corporation borrowed in a bond situation






28. Business Weekly & Forbes & Money






29. Investors who are afraid to make investments






30. Bold and high-risk investments






31. Brokers who provided little or no information to clients






32. 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.






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






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






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






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






38. 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.






39. 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.'






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






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






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






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






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






45. An amount that credit card companies can charge for the use of a credit card.






46. A general and progressive increase in prices






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






48. The place where stocks are bought and sold.






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






50. Charles Schwab & TD Ameritrade & E*TRADE