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 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.






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






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






4. Expenses that aren't paid every month and can be either fixed or variable.






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






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






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






8. Expenses that are not fixed.






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






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






11. Charles Schwab & TD Ameritrade & E*TRADE






12. US treasury security that matures in 30 years






13. Earning interest on interest.






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






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






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






17. Newspapers list of securities






18. Merrill Lynch & Fidelity Investments & American Express






19. Property consisting of houses and land






20. The portion of the profits paid to the shareholders of a company.






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






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






23. Associated with owning stock of similar groups of businesses






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






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






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






27. Earning interest on interest.






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






29. The entire amount of money you owe to lenders






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






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






32. A general and progressive increase in prices






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






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






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






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






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






38. A technique used for estimating the number of years required to double your money at a given rate






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






40. 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.






41. Associated with owning stock of similar groups of businesses






42. Business Weekly & Forbes & Money






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






44. Brokers who provided little or no information to clients






45. Associated with owning stock of only one company






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






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






48. The date on which the borrowed money must be repaid






49. Investment choices that will be held for long periods






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