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 for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.






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






3. A chosen pursuit - profession - or occupation






4. 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.






5. Movement of money you receive and the money you spend






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






7. Another term for budget






8. The place where stocks are bought and sold.






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






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






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






12. The portion of the profits paid to the shareholders of a company.






13. Wall Street Journal and Barron's






14. The profit from an investment.






15. The willingness to give up something you want now in return for something better in the future.






16. Charles Schwab & TD Ameritrade & E*TRADE






17. Associated with owning stock of similar groups of businesses






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






19. Property consisting of houses and land






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






21. 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.






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






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






24. Debt obligations of state or local governments






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






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






27. Investment choices that will be held for long periods






28. A general and progressive increase in prices






29. Investment choices that will be held for long periods






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






31. Merrill Lynch & Fidelity Investments & American Express






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






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






34. 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.






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






36. Earning interest on interest.






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






38. Summary of a corporation's financial condition






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






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






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






42. Business Weekly & Forbes & Money






43. The entire amount of money you owe to lenders






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






45. 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.






46. Debt obligations of state or local governments






47. Debt obligations of corporations






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






49. The credit union term for a savings account.






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