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






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






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






4. US treasury security that matures in 30 years






5. The profit from an investment.






6. Brokers who provided little or no information to clients






7. The credit union term for a savings account.






8. Investors who are afraid to make investments






9. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.






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






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






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






13. 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.






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






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






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






17. 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.






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






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






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






21. 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.






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






23. Business Weekly & Forbes & Money






24. Another term for budget






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






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






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






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






29. Business Weekly & Forbes & Money






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






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






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






33. Associated with owning stock of only one company






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






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






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






37. A unit of ownership in a corporation






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






39. Charles Schwab & TD Ameritrade & E*TRADE






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






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






42. Companies that provide extensive financial data to clients






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






44. 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.






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






46. Bold and high-risk investments






47. 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.






48. Bold and high-risk investments






49. Associated with owning stock of only one company






50. Investment choices that will be held for long periods