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. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






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






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






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






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






9. A unit of ownership in a corporation






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






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






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






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






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






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






16. Standard and Poor's and Moody's






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






18. Collection of investments






19. Earning interest on interest.






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






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






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






23. Bonds designed for investors wanting to protect again inflation losses






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






25. Associated with owning stock of only one company






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






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






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






29. Summary of a corporation's financial condition






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






31. US treasury security that matures from a few days to one year






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






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






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






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






36. Standard and Poor's and Moody's






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






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






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






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






41. Property consisting of houses and land






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. Companies that provide extensive financial data to clients






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






45. Companies that provide extensive financial data to clients






46. Brokers who provided little or no information to clients






47. US treasury security that matures in 30 years






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






49. Newspapers list of securities






50. The place where stocks are bought and sold.