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. Debt obligations of corporations






2. The profit from an investment.






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






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






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






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






7. Property consisting of houses and land






8. Another term for budget






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






10. Charles Schwab & TD Ameritrade & E*TRADE






11. Investment choices that will be held for long periods






12. Wall Street Journal and Barron's






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






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






15. Business Weekly & Forbes & Money






16. 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.






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






18. 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.






19. Associated with owning stock of similar groups of businesses






20. Wall Street Journal and Barron's






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






22. Companies that provide extensive financial data to clients






23. Newspapers list of securities






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






25. Investors who take to take chances






26. Associated with owning stock of similar groups of businesses






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






28. 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.'






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






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






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






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






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






34. 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.






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






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






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






38. Debt obligations of corporations






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






40. Brokers who provide clients with analysis and opinions






41. A general and progressive increase in prices






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






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






44. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date






45. Investors who are afraid to make investments






46. The credit union term for a checking account.






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






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






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






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