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






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






3. 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.






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






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






6. A general and progressive increase in prices






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






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






9. Regular and planned investments






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






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






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






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






14. 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.






15. 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.'






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






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






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






19. The credit union term for a checking account.






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






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






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






23. Newspapers list of securities






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






25. Newspapers list of securities






26. An amount that credit card companies can charge for the use of a credit card.






27. Debt obligations of state or local governments






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






29. A chosen pursuit - profession - or occupation






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






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






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






33. The entire amount of money you owe to lenders






34. Collection of investments






35. Brokers who provided little or no information to clients






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






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






38. A unit of ownership in a corporation






39. The credit union term for a savings account.






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






41. The amount a corporation borrowed in a bond situation






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






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






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






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






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






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






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






49. US treasury security that matures in 30 years






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