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. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






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






7. A chosen pursuit - profession - or occupation






8. The credit union term for a checking account.






9. Debt obligations of state or local governments






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






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






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






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






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






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






16. Investors who take to take chances






17. The place where stocks are bought and sold.






18. A general and progressive increase in prices






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






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






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






22. A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest.






23. 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.'






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






25. Associated with owning stock of only one company






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






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






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






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






30. Expenses that are not fixed.






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






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






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






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






35. Associated with owning stock of only one company






36. 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.






37. Debt obligations of corporations






38. The amount a corporation borrowed in a bond situation






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






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






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






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






43. Business Weekly & Forbes & Money






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






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






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






47. The credit union term for a checking account.






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






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






50. Maximum amount of credit a lender will extend to a customer.