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






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






3. Brokers who provided little or no information to clients






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






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






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






7. Wall Street Journal and Barron's






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






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






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






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






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






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






14. Brokers who provide clients with analysis and opinions






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






16. Movement of money you receive and the money you spend






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






18. Debt obligations of corporations






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






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






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






22. Brokers who provide clients with analysis and opinions






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






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






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






26. Charles Schwab & TD Ameritrade & E*TRADE






27. Expenses that aren't paid every month and can be either fixed or variable.






28. US treasury security that matures in 2 & 5 & or 10 years






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






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






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






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






33. Collection of investments






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






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






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






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






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






39. Debt obligations of state or local governments






40. 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.






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






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






43. Companies that provide extensive financial data to clients






44. Expenses that are not fixed.






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






46. The entire amount of money you owe to lenders






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






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






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






50. Associated with owning stock of only one company