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






2. Investment choices that will be held for long periods






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






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






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






6. Earning interest on interest.






7. Standard and Poor's and Moody's






8. 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.






9. US treasury security that matures in 30 years






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






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






12. Summary of a corporation's financial condition






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






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






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






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






17. A chosen pursuit - profession - or occupation






18. Newspapers list of securities






19. A general and progressive increase in prices






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






21. Debt obligations of state or local governments






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






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






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






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






26. Associated with owning stock of only one company






27. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.






28. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.






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






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






31. Associated with owning stock of similar groups of businesses






32. Investors who are afraid to make investments






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






34. Debt obligations of state or local governments






35. The credit union term for a checking account.






36. 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.'






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






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






39. Another term for budget






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






41. Newspapers list of securities






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






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






44. Wall Street Journal and Barron's






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






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






47. Bold and high-risk investments






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






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






50. Regular and planned investments