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






2. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller






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






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






6. Brokers who provided little or no information to clients






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






8. Associated with owning stock of similar groups of businesses






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






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






11. 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.






12. 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.






13. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






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






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






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






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






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






19. 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.






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






21. 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.'






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






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






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






25. US treasury security that matures in 30 years






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






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






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






29. The place where stocks are bought and sold.






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






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






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






33. Charles Schwab & TD Ameritrade & E*TRADE






34. The credit union term for a savings account.






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






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






37. The place where stocks are bought and sold.






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






39. Investing with a series of regular payments; usually associated with life insurance companies






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






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






42. Summary of a corporation's financial condition






43. Investment choices that will be held for long periods






44. A unit of ownership in a corporation






45. Business Weekly & Forbes & Money






46. Brokers who provide clients with analysis and opinions






47. The value of What is given up when you choose one option over another.






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






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






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