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






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






3. Earning interest on interest.






4. US treasury security that matures in 30 years






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






6. Brokers who provide clients with analysis and opinions






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






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






9. Bold and high-risk investments






10. A unit of ownership in a corporation






11. 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.






12. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.






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






14. Debt obligations of state or local governments






15. Bold and high-risk investments






16. Associated with owning stock of only one company






17. Expenses that are not fixed.






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






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






20. Another term for budget






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






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






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






24. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.






25. 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.






26. People trained to give investment advise based on your goals & age & lifestyle & etc






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






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






29. Amount of money that is set aside for future purchases






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






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






32. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






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






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






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






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






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






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






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






41. The amount a corporation borrowed in a bond situation






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






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






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






45. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






49. 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.






50. Amount of money that is set aside for future purchases