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 unit of ownership in a corporation






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






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






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






5. 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.






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






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






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






9. Newspapers list of securities






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






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






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






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






14. 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.






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






16. Charles Schwab & TD Ameritrade & E*TRADE






17. Business Weekly & Forbes & Money






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






19. Collection of investments






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






21. Wall Street Journal and Barron's






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






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






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






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






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






27. 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.'






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






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






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






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






32. 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.






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






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






35. 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.






36. Debt obligations of state or local governments






37. The entire amount of money you owe to lenders






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






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






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






41. The place where stocks are bought and sold.






42. Investors who are afraid to make investments






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






44. Property consisting of houses and land






45. Earning interest on interest.






46. US treasury security that matures in 30 years






47. Standard and Poor's and Moody's






48. A chosen pursuit - profession - or occupation






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






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