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






2. Bold and high-risk investments






3. 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.






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






5. Summary of a corporation's financial condition






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






7. A unit of ownership in a corporation






8. The credit union term for a checking account.






9. Collection of investments






10. Investing with a series of regular payments; usually associated with life insurance companies






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






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






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






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






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






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






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. The entire amount of money you owe to lenders






19. The date on which the borrowed money must be repaid






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






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






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






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






24. The profit from an investment.






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






26. Earning interest on interest.






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






28. Associated with owning stock of similar groups of businesses






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






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






31. The amount a corporation borrowed in a bond situation






32. Investing with a series of regular payments; usually associated with life insurance companies






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






34. Bonds designed for investors wanting to protect again inflation losses






35. Merrill Lynch & Fidelity Investments & American Express






36. The belief - qualities - or standards that you consider important or desirable.






37. Summary of a corporation's financial condition






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






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






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






41. Brokers who provided little or no information to clients






42. Investment choices that will be held for long periods






43. Companies that provide extensive financial data to clients






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






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






46. Expenses that are not fixed.






47. 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.






48. Brokers who provide clients with analysis and opinions






49. Expenses that are not fixed.






50. The date on which the borrowed money must be repaid