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. The increase or decrease in the original purchase price of an investment over a period of time.






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






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






5. People trained to give investment advise based on your goals & age & lifestyle & etc






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






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






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






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






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






11. Earning interest on interest.






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






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






14. Brokers who provided little or no information to clients






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






16. 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.






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






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






19. Summary of a corporation's financial condition






20. Charles Schwab & TD Ameritrade & E*TRADE






21. Associated with owning stock of only one company






22. Property consisting of houses and land






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






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






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






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






27. A unit of ownership in a corporation






28. 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.






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






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






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






32. Newspapers list of securities






33. Expenses that are not fixed.






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






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






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






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






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






39. Property consisting of houses and land






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






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






42. The credit union term for a savings account.






43. Low-priced stocks of small companies that have no track record






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






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






46. The profit from an investment.






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






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






49. Brokers who provide clients with analysis and opinions






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