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. Property consisting of houses and land






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






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






4. 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.






5. Regular and planned investments






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






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






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






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






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






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






12. Charles Schwab & TD Ameritrade & E*TRADE






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






14. Merrill Lynch & Fidelity Investments & American Express






15. Wall Street Journal and Barron's






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






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






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






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






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






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






22. A unit of ownership in a corporation






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






24. Investors who are afraid to make investments






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






26. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






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






28. Wall Street Journal and Barron's






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






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






31. 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.'






32. Bold and high-risk investments






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






34. Collection of investments






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






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






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






38. Companies that provide extensive financial data to clients






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






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






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






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






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






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






45. Regular and planned investments






46. Contacts to buy and sell commodities or stocks for a specific price on a specific date






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






48. Bold and high-risk investments






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






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