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. 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.






2. Bold and high-risk investments






3. Charles Schwab & TD Ameritrade & E*TRADE






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






5. 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.






6. Collection of investments






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






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






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






10. The belief - qualities - or standards that you consider important or desirable.






11. A general and progressive increase in prices






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






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






14. Companies that provide extensive financial data to clients






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






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






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






18. Earning interest on interest.






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






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






21. US treasury security that matures in 30 years






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. Expenses that are not fixed.






24. Summary of a corporation's financial condition






25. A spending plan for managing money during a given period of time.






26. The date on which the borrowed money must be repaid






27. Wall Street Journal and Barron's






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






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






30. Investors who are afraid to make investments






31. The amount a corporation borrowed in a bond situation






32. 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.






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






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






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






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






37. Debt obligations of state or local governments






38. 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.






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






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






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






42. Spreading risk among many types of investments; one way to minimize risk






43. Property consisting of houses and land






44. Merrill Lynch & Fidelity Investments & American Express






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






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






47. A spending plan for managing money during a given period of time.






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






49. Business Weekly & Forbes & Money






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