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. Regular and planned investments






2. 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.






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






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






5. Collection of investments






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






7. US treasury security that matures in 30 years






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






9. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.






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






11. The credit union term for a savings account.






12. The profit from an investment.






13. 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.'






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






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






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






17. Debt obligations of state or local governments






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






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






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






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






22. A general and progressive increase in prices






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






24. Collection of investments






25. A unit of ownership in a corporation






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






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






28. The profit from an investment.






29. Charles Schwab & TD Ameritrade & E*TRADE






30. The credit union term for a checking account.






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






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






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






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






35. Standard and Poor's and Moody's






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






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






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






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






40. Associated with owning stock of only one company






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






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






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






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






45. The amount a corporation borrowed in a bond situation






46. Investment choices that will be re-evaluated within a year or less






47. The probability that injury - damage - or loss will occur.






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






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






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