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 amount a corporation pays at a fixed amount when repaying a bond






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






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






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






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






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






7. 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.






8. Associated with owning stock of only one company






9. The credit union term for a checking account.






10. The place where stocks are bought and sold.






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






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






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






14. A technique used for estimating the number of years required to double your money at a given rate






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






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






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






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






20. Property consisting of houses and land






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






22. Wall Street Journal and Barron's






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






25. 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.






26. 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.'






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






28. Investors who are afraid to make investments






29. A unit of ownership in a corporation






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






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






32. Debt obligations of state or local governments






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






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






35. 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.






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






37. Debt obligations of corporations






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






39. The entire amount of money you owe to lenders






40. Charles Schwab & TD Ameritrade & E*TRADE






41. The entire amount of money you owe to lenders






42. Another term for budget






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






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






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






46. 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.






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






48. The profit from an investment.






49. Standard and Poor's and Moody's






50. A technique used for estimating the number of years required to double your money at a given rate