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. Bonds designed for investors wanting to protect again inflation losses






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






3. Brokers who provided little or no information to clients






4. Investors who take to take chances






5. Losses in an investment as a result of the business cycle






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






7. The amount a corporation borrowed in a bond situation






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






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






10. Bold and high-risk investments






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






12. Things that add comfort and pleasure to your life but you can live without if you need to.






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






14. US treasury security that matures in 2 & 5 & or 10 years






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






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






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






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






19. A form of bankruptcy that allows you to erase most of your debt.






20. Debt obligations of state or local governments






21. Bold and high-risk investments






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






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






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






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






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






27. The credit union term for a checking account.






28. Property consisting of houses and land






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






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






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






32. Charles Schwab & TD Ameritrade & E*TRADE






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






34. 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.






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






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






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






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






39. 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.






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






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






42. Wall Street Journal and Barron's






43. Regular and planned investments






44. Associated with owning stock of similar groups of businesses






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






46. A form of bankruptcy that allows you to erase most of your debt.






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






48. Investors who take to take chances






49. Property consisting of houses and land






50. Standard and Poor's and Moody's