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. 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.






2. Business Weekly & Forbes & Money






3. 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.'






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






5. Property consisting of houses and land






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






7. Investment choices that will be held for long periods






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






9. Brokers who provided little or no information to clients






10. The entire amount of money you owe to lenders






11. US treasury security that matures in 30 years






12. Associated with owning stock of only one company






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






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






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






16. The credit union term for a savings account.






17. Property consisting of houses and land






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






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






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






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






22. The credit union term for a savings account.






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






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






25. Standard and Poor's and Moody's






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






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






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






29. Investment choices that will be held for long periods






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






31. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.






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






33. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.






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






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






36. Another term for budget






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






38. Another term for budget






39. 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.






40. A technique used for estimating the number of years required to double your money at a given rate






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






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






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






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






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






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






47. Merrill Lynch & Fidelity Investments & American Express






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






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