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. 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.






2. The profit from an investment.






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






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






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






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






7. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.






8. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






13. A unit of ownership in a corporation






14. The entire amount of money you owe to lenders






15. Business Weekly & Forbes & Money






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






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






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






19. The probability that injury - damage - or loss will occur.






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






21. Debt obligations of corporations






22. 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.'






23. Regular and planned investments






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






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






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






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






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






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






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






31. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.






32. Property consisting of houses and land






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






34. Charles Schwab & TD Ameritrade & E*TRADE






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






36. 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.






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






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






39. Investment choices that will be held for long periods






40. Investors who are afraid to make investments






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






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






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






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






45. Debt obligations of corporations






46. A general and progressive increase in prices






47. A chosen pursuit - profession - or occupation






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






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






50. The credit union term for a checking account.