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. Investment choices that will be held for long periods






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






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






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






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






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






7. Debt obligations of corporations






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






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






11. Wall Street Journal and Barron's






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






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






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






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






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






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. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






22. Brokers who provide clients with analysis and opinions






23. The place where stocks are bought and sold.






24. A unit of ownership in a corporation






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






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






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






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






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






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






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






32. Associated with owning stock of only one company






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






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






35. 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.






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






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






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






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






40. Brokers who provided little or no information to clients






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






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






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






44. 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.'






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






46. Bold and high-risk investments






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






48. Earning interest on interest.






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






50. Regular and planned investments