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. The profit from an investment.






3. A unit of ownership in a corporation






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






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






6. Fee on credit card for making charges above your credit limit.






7. 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.






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






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






10. Associated with owning stock of only one company






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






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






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






14. Brokers who provided little or no information to clients






15. The place where stocks are bought and sold.






16. Investors who take to take chances






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






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






19. Merrill Lynch & Fidelity Investments & American Express






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






21. Earning interest on interest.






22. Newspapers list of securities






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






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






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






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






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






28. A detailed record of your personal credit and financial transactions.






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






30. Property consisting of houses and land






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






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






33. Reducing investment risk by putting money in several different types of investments.






34. Smaller decisions that can result from a major decision.






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






36. Investors who take to take chances






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






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






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






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






41. The credit union term for a checking account.






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






43. Investors who are afraid to make investments






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






45. 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.






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






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






48. 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.






49. Expenses that are not fixed.






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