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. Associated with owning stock of similar groups of businesses






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






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






4. Standard and Poor's and Moody's






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






6. Another term for budget






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






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






9. Charles Schwab & TD Ameritrade & E*TRADE






10. 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.






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






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






13. Investment choices that will be held for long periods






14. The credit union term for a checking account.






15. Business Weekly & Forbes & Money






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






17. Contacts to buy and sell commodities or stocks for a specific price on a specific date






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






19. 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.






20. The amount a corporation borrowed in a bond situation






21. 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.






22. Wall Street Journal and Barron's






23. A term that describes investments on which earnings are not taxed until retirement






24. The entire amount of money you owe to lenders






25. A bank account against which the depositor can draw checks payable on demand.






26. Associated with owning stock of only one company






27. Charles Schwab & TD Ameritrade & E*TRADE






28. 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.






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






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






31. A general and progressive increase in prices






32. Debt obligations of corporations






33. Debt obligations of state or local governments






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






35. Debt obligations of corporations






36. 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.






37. Investors who take to take chances






38. Summary of a corporation's financial condition






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






40. Associated with owning stock of only one company






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






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






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






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






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






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






47. Collection of investments






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






49. The unique passcode number you use to get access to your savings and/or checking account






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