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






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






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






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






7. Brokers who provide clients with analysis and opinions






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






9. The willingness to give up something you want now in return for something better in the future.






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






11. Wall Street Journal and Barron's






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






13. Charles Schwab & TD Ameritrade & E*TRADE






14. 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.






15. The credit union term for a checking account.






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






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






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






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






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






21. Debt obligations of corporations






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






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






24. 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.






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






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






27. Merrill Lynch & Fidelity Investments & American Express






28. Brokers who provided little or no information to clients






29. Newspapers list of securities






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






31. The credit union term for a savings account.






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






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






34. A chosen pursuit - profession - or occupation






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






36. Bold and high-risk investments






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






38. An amount that credit card companies can charge for the use of a credit card.






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






40. 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.






41. Charles Schwab & TD Ameritrade & E*TRADE






42. Merrill Lynch & Fidelity Investments & American Express






43. A detailed record of your personal credit and financial transactions.






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






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






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






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






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






49. The place where stocks are bought and sold.






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