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






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






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






5. Collection of investments






6. 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.






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






8. The amount a corporation borrowed in a bond situation






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






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






11. The belief - qualities - or standards that you consider important or desirable.






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






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






14. A term that describes investments on which earnings are not taxed until retirement






15. A chosen pursuit - profession - or occupation






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






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






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






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






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






21. 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.






22. Debt obligations of state or local governments






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






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






25. 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.






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






27. A general and progressive increase in prices






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






29. 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.






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






31. The place where stocks are bought and sold.






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






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






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






35. Investors who are afraid to make investments






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






37. Bold and high-risk investments






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






39. Associated with owning stock of similar groups of businesses






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






41. Standard and Poor's and Moody's






42. Property consisting of houses and land






43. Charles Schwab & TD Ameritrade & E*TRADE






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






45. Investors who are afraid to make investments






46. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.






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






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






49. A general and progressive increase in prices






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