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 amount a corporation borrowed in a bond situation






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






3. Conservative investing; used when you have 'excess' savings






4. Newspapers list of securities






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






6. Charles Schwab & TD Ameritrade & E*TRADE






7. A general and progressive increase in prices






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






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






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






11. Merrill Lynch & Fidelity Investments & American Express






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






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






14. 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.






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






16. Associated with owning stock of only one company






17. The profit from an investment.






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






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






20. Business Weekly & Forbes & Money






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






22. Bold and high-risk investments






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






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. Debt obligations of state or local governments






26. Wall Street Journal and Barron's






27. Newspapers list of securities






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






29. Standard and Poor's and Moody's






30. A detailed record of your personal credit and financial transactions.






31. Summary of a corporation's financial condition






32. Companies that provide extensive financial data to clients






33. 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.






34. Charles Schwab & TD Ameritrade & E*TRADE






35. The use of long-term savings to earn a financial return






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






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






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






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






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






41. Expenses that are not fixed.






42. The place where stocks are bought and sold.






43. Brokers who provide clients with analysis and opinions






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






45. The credit union term for a checking account.






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






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






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






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






50. 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.