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 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.






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






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






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






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






6. Smaller decisions that can result from a major decision.






7. Brokers who provided little or no information to clients






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






9. Investors who take to take chances






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






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






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






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






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






15. A unit of ownership in a corporation






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






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






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






19. A detailed record of your personal credit and financial transactions.






20. Newspapers list of securities






21. Smaller decisions that can result from a major decision.






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






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






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






25. Investors who are afraid to make investments






26. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






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






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






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






33. Newspapers list of securities






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






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






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






37. Another term for budget






38. Debt obligations of state or local governments






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






40. The credit union term for a checking account.






41. Collection of investments






42. The place where stocks are bought and sold.






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






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






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






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






47. Investors who are afraid to make investments






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






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






50. Debt obligations of corporations