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 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.'






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






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






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






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






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






7. Investors who are afraid to make investments






8. Debt obligations of state or local governments






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






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






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






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






13. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.






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






15. Earning interest on interest.






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






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






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






19. Charles Schwab & TD Ameritrade & E*TRADE






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






21. A general and progressive increase in prices






22. Newspapers list of securities






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






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






25. Summary of a corporation's financial condition






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






27. The setting aside of money for future use or other investments






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






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






30. Expenses that are not fixed.






31. Regular and planned investments






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






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






34. Associated with owning stock of similar groups of businesses






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






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






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






38. The place where stocks are bought and sold.






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






40. Brokers who provided little or no information to clients






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






42. Another term for budget






43. US treasury security that matures in 30 years






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






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






46. 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.






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






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






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






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