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. Brokers who provided little or no information to clients






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






4. Standard and Poor's and Moody's






5. Regular and planned investments






6. Investment choices that will be held for long periods






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






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






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






10. A government sector that requires all public corporations to make annual reports available to their stockholders






11. Charles Schwab & TD Ameritrade & E*TRADE






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






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






14. Associated with owning stock of similar groups of businesses






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






16. Another term for budget






17. 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.'






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






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






20. Investment choices that will be held for long periods






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






22. 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.






23. 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.






24. Merrill Lynch & Fidelity Investments & American Express






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






26. Summary of a corporation's financial condition






27. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller






28. 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.'






29. Brokers who provided little or no information to clients






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






31. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.






32. 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.






33. Wall Street Journal and Barron's






34. The maximum amount an insurance company will pay if you file a claim.






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






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






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






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






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






40. Associated with owning stock of only one company






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






42. The credit union term for a checking account.






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






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






45. The entire amount of money you owe to lenders






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






47. Expenses that are not fixed.






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






49. A chosen pursuit - profession - or occupation






50. Amount of money that is set aside for future purchases