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 place where stocks are bought and sold.






2. Standard and Poor's and Moody's






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






4. Investment choices that will be held for long periods






5. 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.'






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






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






8. Property consisting of houses and land






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






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






11. Regular and planned investments






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






13. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.






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






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






16. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






17. 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.






18. A unit of ownership in a corporation






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






20. The credit union term for a savings account.






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






22. Investors who take to take chances






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






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






25. 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.






26. Charles Schwab & TD Ameritrade & E*TRADE






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






28. The credit union term for a savings account.






29. Summary of a corporation's financial condition






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






31. The entire amount of money you owe to lenders






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






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






34. A chosen pursuit - profession - or occupation






35. A form of bankruptcy that allows you to erase most of your debt.






36. Management of investment alternatives to maximize the growth of your portfolio






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






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






39. US treasury security that matures in 30 years






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






41. Debt obligations of corporations






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






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






44. The chance that an investment's value will decrease






45. Maximum amount of credit a lender will extend to a customer.






46. Debt obligations of state or local governments






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






48. Bold and high-risk investments






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






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