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






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






3. Collection of investments






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






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






6. Associated with owning stock of similar groups of businesses






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






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






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






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






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






12. 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.






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






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






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






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






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






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






19. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.






20. Merrill Lynch & Fidelity Investments & American Express






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






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






23. Earning interest on interest.






24. The credit union term for a checking account.






25. 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.






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






27. The place where stocks are bought and sold.






28. Brokers who provided little or no information to clients






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






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






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






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






33. Property consisting of houses and land






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






35. The credit union term for a savings account.






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






37. Regular and planned investments






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






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






40. 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.






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






42. The credit union term for a savings account.






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






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






45. Bold and high-risk investments






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






47. The place where stocks are bought and sold.






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






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






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