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. Property consisting of houses and land






2. 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.






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






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






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






7. Investors who take to take chances






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






9. 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.






10. Bold and high-risk investments






11. The credit union term for a savings account.






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. 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.






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






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






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






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






18. The credit union term for a checking account.






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






20. 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.'






21. The credit union term for a checking account.






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






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






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






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






26. The credit union term for a savings account.






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






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






29. The entire amount of money you owe to lenders






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






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






32. A chosen pursuit - profession - or occupation






33. Brokers who provided little or no information to clients






34. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.






35. 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.






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






37. Associated with owning stock of only one company






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






39. Debt obligations of corporations






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






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






42. Associated with owning stock of similar groups of businesses






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






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






45. Wall Street Journal and Barron's






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






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






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






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






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