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






2. The amount a corporation borrowed in a bond situation






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






4. A unit of ownership in a corporation






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






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






7. Things that add comfort and pleasure to your life but you can live without if you need to.






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






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






10. A form of bankruptcy that allows you to erase most of your debt.






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






12. Debt obligations of state or local governments






13. The entire amount of money you owe to lenders






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






15. 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.






16. Brokers who provide clients with analysis and opinions






17. The process of dealing with the chance of a potential personal or financial loss.






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






19. Newspapers list of securities






20. The amount a corporation borrowed in a bond situation






21. A chosen pursuit - profession - or occupation






22. Associated with owning stock of only one company






23. Investment choices that will be held for long periods






24. Low-priced stocks of small companies that have no track record






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






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






27. Merrill Lynch & Fidelity Investments & American Express






28. Investors who take to take chances






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






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






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






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






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






34. Collection of investments






35. Expenses that are not fixed.






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






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






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






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






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






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






42. The entire amount of money you owe to lenders






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






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






45. Companies that provide extensive financial data to clients






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






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






48. The credit union term for a savings account.






49. 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.






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