Test your basic knowledge |

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. 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. Wall Street Journal and Barron's

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

4. 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.'

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

6. 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.

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

8. Merrill Lynch & Fidelity Investments & American Express

9. Charles Schwab & TD Ameritrade & E*TRADE

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

11. Associated with owning stock of only one company

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

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

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

15. 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.

16. The profit from an investment.

17. 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.

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

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

20. A chosen pursuit - profession - or occupation

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

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

23. Companies that provide extensive financial data to clients

24. Bold and high-risk investments

25. Debt obligations of state or local governments

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

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

28. Investors who take to take chances

29. Newspapers list of securities

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

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

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

33. Expenses that aren't paid every month and can be either fixed or variable.

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

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

36. Things that add comfort and pleasure to your life but you can live without if you need to.

37. 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.

38. Investors who are afraid to make investments

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

40. Regular and planned investments

41. Regular and planned investments

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

43. A general and progressive increase in prices

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

45. Pooling of money from many investors to buy a large & diverse selection of securities

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

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

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

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

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