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






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. Bold and high-risk investments






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






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






7. Brokers who provided little or no information to clients






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






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






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






11. Debt obligations of corporations






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






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






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






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






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






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






18. The entire amount of money you owe to lenders






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






20. A unit of ownership in a corporation






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






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






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






24. Associated with owning stock of only one company






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






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






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






28. An amount that credit card companies can charge for the use of a credit card.






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






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






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






32. Summary of a corporation's financial condition






33. Investors who take to take chances






34. A chosen pursuit - profession - or occupation






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






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






37. Property consisting of houses and land






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






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






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






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






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






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






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






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






46. The profit from an investment.






47. Merrill Lynch & Fidelity Investments & American Express






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






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






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