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. Brokers who provide clients with analysis and opinions






2. 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.






3. Newspapers list of securities






4. The credit union term for a savings account.






5. 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.






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






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






8. A unit of ownership in a corporation






9. The place where stocks are bought and sold.






10. Movement of money you receive and the money you spend






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






12. Investors who are afraid to make investments






13. Associated with owning stock of similar groups of businesses






14. 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.






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






16. Regular and planned investments






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






18. A chosen pursuit - profession - or occupation






19. Merrill Lynch & Fidelity Investments & American Express






20. The use of long-term savings to earn a financial return






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






22. The credit union term for a checking account.






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






24. 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.






25. Earning interest on interest.






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






27. Associated with owning stock of similar groups of businesses






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






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






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






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






32. Regular and planned investments






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






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






35. Expenses that are not fixed.






36. Wall Street Journal and Barron's






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






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






39. The entire amount of money you owe to lenders






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






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






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






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






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






45. 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.






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






47. The credit union term for a savings account.






48. Standard and Poor's and Moody's






49. The amount a corporation borrowed in a bond situation






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