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






2. Debt obligations of state or local governments






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






4. Investors who are afraid to make investments






5. A general and progressive increase in prices






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






7. 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.'






8. Investors who take to take chances






9. Earning interest on interest.






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






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






12. The credit union term for a checking account.






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






14. US treasury security that matures in 30 years






15. Associated with owning stock of similar groups of businesses






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






17. Charles Schwab & TD Ameritrade & E*TRADE






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






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






20. Charles Schwab & TD Ameritrade & E*TRADE






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






22. Wall Street Journal and Barron's






23. The profit from an investment.






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






25. Companies that provide extensive financial data to clients






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






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






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






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






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






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






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






33. 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.






34. The entire amount of money you owe to lenders






35. The amount a corporation borrowed in a bond situation






36. The place where stocks are bought and sold.






37. A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest.






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






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






40. A goal to be achieved within the next three months.






41. Associated with owning stock of only one company






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






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






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






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






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






47. Expenses that are not fixed.






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






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






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