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






2. Regular and planned investments






3. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'






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






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






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






7. Collection of investments






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






9. A term that describes investments on which earnings are not taxed until retirement






10. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.






11. Charles Schwab & TD Ameritrade & E*TRADE






12. 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.






13. Associated with owning stock of similar groups of businesses






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






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






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






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






18. The entire amount of money you owe to lenders






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






20. Associated with owning stock of similar groups of businesses






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






22. A general and progressive increase in prices






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






24. The credit union term for a checking account.






25. Expenses that aren't paid every month and can be either fixed or variable.






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






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






28. Newspapers list of securities






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






30. 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.






31. The place where stocks are bought and sold.






32. Brokers who provided little or no information to clients






33. Wall Street Journal and Barron's






34. Bold and high-risk investments






35. Business Weekly & Forbes & Money






36. A chosen pursuit - profession - or occupation






37. The profit from an investment.






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






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






40. A payroll deduction collected by employers by law and sent to the state government to support state services.






41. Charles Schwab & TD Ameritrade & E*TRADE






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






43. Investors who take to take chances






44. Earning interest on interest.






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






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






47. Brokers who provided little or no information to clients






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






49. Regular and planned investments






50. Wall Street Journal and Barron's