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Financial Literacy Basics

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

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

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

4. Charles Schwab & TD Ameritrade & E*TRADE

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

6. The credit union term for a checking account.

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

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

9. 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.

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

11. Regular and planned investments

12. Summary of a corporation's financial condition

13. 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.'

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

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

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

17. Brokers who provided little or no information to clients

18. Wall Street Journal and Barron's

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

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

21. 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.

22. Debt obligations of corporations

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

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

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

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

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

28. Investors who are afraid to make investments

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

30. Associated with owning stock of only one company

31. People trained to give investment advise based on your goals & age & lifestyle & etc

32. The date on which the borrowed money must be repaid

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

34. Investors who take to take chances

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

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

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

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

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

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

41. Actions that the government might take that would reduce the value of an investment

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

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

44. The increase or decrease in the original purchase price of an investment over a period of time.

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

46. Maximum amount of credit a lender will extend to a customer.

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

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

49. The place where stocks are bought and sold.

50. Expenses that are not fixed.