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






2. A term that describes investments on which earnings are not taxed until retirement






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






4. A general and progressive increase in prices






5. The credit union term for a savings account.






6. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness






7. The entire amount of money you owe to lenders






8. A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest.






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






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






11. The entire amount of money you owe to lenders






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






13. Property consisting of houses and land






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






15. Property consisting of houses and land






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






17. The amount a corporation borrowed in a bond situation






18. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






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






24. Bold and high-risk investments






25. Companies that provide extensive financial data to clients






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






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






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






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






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






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






32. The profit from an investment.






33. Summary of a corporation's financial condition






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






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






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






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






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






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






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






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






42. The profit from an investment.






43. Newspapers list of securities






44. 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.






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






46. A unit of ownership in a corporation






47. A spending plan for managing money during a given period of time.






48. Associated with owning stock of similar groups of businesses






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






50. The credit union term for a checking account.