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. A general and progressive increase in prices






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






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






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






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






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






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






9. The use of long-term savings to earn a financial return






10. Brokers who provide clients with analysis and opinions






11. Regular and planned investments






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






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






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






15. Bold and high-risk investments






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






17. Another term for budget






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






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






20. Associated with owning stock of similar groups of businesses






21. The place where stocks are bought and sold.






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






23. Actions that the government might take that would reduce the value of an investment






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






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






26. Brokers who provide clients with analysis and opinions






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






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






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






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






31. Summary of a corporation's financial condition






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






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






34. 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.






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






36. Wall Street Journal and Barron's






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






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






39. Regular and planned investments






40. A chosen pursuit - profession - or occupation






41. A general and progressive increase in prices






42. 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.






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






44. Property consisting of houses and land






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






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






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






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






49. 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.






50. 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.