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






2. The place where stocks are bought and sold.






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






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






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






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






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






8. A chosen pursuit - profession - or occupation






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






10. Wall Street Journal and Barron's






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






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






13. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness






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






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






16. The place where stocks are bought and sold.






17. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.






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






19. A summary of a person's borrowing and repayment history.






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






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






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






23. Companies that provide extensive financial data to clients






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






25. A general and progressive increase in prices






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






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






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






29. Investment choices that will be re-evaluated within a year or less






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






31. Brokers who provided little or no information to clients






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






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






34. 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.






35. Associated with owning stock of similar groups of businesses






36. A summary of a person's borrowing and repayment history.






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






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






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






40. Companies that provide extensive financial data to clients






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






42. 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.






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






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






45. Regular and planned investments






46. A unit of ownership in a corporation






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






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






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






50. The amount a corporation borrowed in a bond situation