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






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






3. Business Weekly & Forbes & Money






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






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






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






7. The willingness to give up something you want now in return for something better in the future.






8. Companies that provide extensive financial data to clients






9. Regular and planned investments






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






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






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






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






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






15. 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.






16. Debt obligations of state or local governments






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






18. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






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






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






21. A government sector that requires all public corporations to make annual reports available to their stockholders






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






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






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






25. 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.






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






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






28. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this






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






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






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






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






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






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






35. Standard and Poor's and Moody's






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






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






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






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






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






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






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






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






44. 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.'






45. Wall Street Journal and Barron's






46. The credit union term for a savings account.






47. The credit union term for a checking account.






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






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






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