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






2. Brokers who provide clients with analysis and opinions






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






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






5. Property consisting of houses and land






6. A unit of ownership in a corporation






7. A general and progressive increase in prices






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






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






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. Regular and planned investments






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






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






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






15. Investment choices that will be held for long periods






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






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






18. The amount a corporation borrowed in a bond situation






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






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






21. Bold and high-risk investments






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






23. Collection of investments






24. A unit of ownership in a corporation






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






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






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






28. Another term for budget






29. 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.






30. Discount bonds; a bond purchased for less than the maturity value; example you buy a $50 bond for $25






31. Merrill Lynch & Fidelity Investments & American Express






32. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.






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






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






35. The profit from an investment.






36. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






37. The place where stocks are bought and sold.






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






39. 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.






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






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






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






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






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






45. 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.






46. Expenses that are not fixed.






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






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






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






50. Investors who are afraid to make investments