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 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.






2. A chosen pursuit - profession - or occupation






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






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






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






6. Wall Street Journal and Barron's






7. Expenses that are not fixed.






8. US treasury security that matures in 30 years






9. Property consisting of houses and land






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






11. 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.






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






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






14. Investors who are afraid to make investments






15. Collection of investments






16. Property consisting of houses and land






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 chance that an investment's value will decrease






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






20. Newspapers list of securities






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






22. Merrill Lynch & Fidelity Investments & American Express






23. The profit from an investment.






24. Debt obligations of corporations






25. Investors who take to take chances






26. Brokers who provide clients with analysis and opinions






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






28. A legal process to get out of debt when you can no longer make all your required payments.






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






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






31. Debt obligations of state or local governments






32. Brokers who provided little or no information to clients






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






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






35. The credit union term for a checking account.






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






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






38. Another term for budget






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






40. Expenses that are not fixed.






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






42. The maximum amount an insurance company will pay if you file a claim.






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






44. The value of What is given up when you choose one option over another.






45. Associated with owning stock of similar groups of businesses






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






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






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






49. 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.'






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