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






2. The entire amount of money you owe to lenders






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






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






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






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






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






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






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






10. 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.'






11. Merrill Lynch & Fidelity Investments & American Express






12. 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.






13. The profit from an investment.






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






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






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






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






18. Charles Schwab & TD Ameritrade & E*TRADE






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






20. Business Weekly & Forbes & Money






21. Expenses that are not fixed.






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






23. Property consisting of houses and land






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






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






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






27. Associated with owning stock of similar groups of businesses






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






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






30. A spending plan for managing money during a given period of time.






31. US treasury security that matures from a few days to one year






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






33. Coins & art & memorabilia or other items that are popular from time to time






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






35. 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.






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






37. Property consisting of houses and land






38. Associated with owning stock of only one company






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






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






41. Business Weekly & Forbes & Money






42. The place where stocks are bought and sold.






43. A chosen pursuit - profession - or occupation






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






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






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






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






48. Conservative investing; used when you have 'excess' savings






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






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