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 place where stocks are bought and sold.






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






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






4. Property consisting of houses and land






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






6. US treasury security that matures in 30 years






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






8. Debt obligations of corporations






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






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






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






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






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






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






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






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






17. Associated with owning stock of only one company






18. The profit from an investment.






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






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






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






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






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






25. A general and progressive increase in prices






26. Earning interest on interest.






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






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






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






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






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






32. The chance that inflation will rise faster than the rate of return on an investment






33. Investors who take to take chances






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






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






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






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






38. Business Weekly & Forbes & Money






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






40. Summary of a corporation's financial condition






41. Brokers who provide clients with analysis and opinions






42. Companies that provide extensive financial data to clients






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






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






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






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






47. Investors who are afraid to make investments






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






49. 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.'






50. Charles Schwab & TD Ameritrade & E*TRADE