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 goal to be achieved within the next three months.






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






3. A unit of ownership in a corporation






4. Investors who take to take chances






5. Brokers who provide clients with analysis and opinions






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






7. Earning interest on interest.






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






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






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






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






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






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






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






15. Companies that provide extensive financial data to clients






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






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






18. Merrill Lynch & Fidelity Investments & American Express






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






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






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






22. Debt obligations of state or local governments






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






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






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






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






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






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






29. A general and progressive increase in prices






30. 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.






31. Companies that provide extensive financial data to clients






32. Property consisting of houses and land






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






34. Investors who are afraid to make investments






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






36. The credit union term for a checking account.






37. 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.






38. The credit union term for a savings account.






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






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






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






42. Summary of a corporation's financial condition






43. 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.






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






45. The chance that inflation will rise faster than the rate of return on an investment






46. 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.'






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






48. Collection of investments






49. The profit from an investment.






50. Regular and planned investments