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






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






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






4. Business Weekly & Forbes & Money






5. A form of bankruptcy that allows you to erase most of your debt.






6. The entire amount of money you owe to lenders






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






8. Debt obligations of state or local governments






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






10. The profit from an investment.






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






12. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this






13. Wall Street Journal and Barron's






14. Expenses that are not fixed.






15. Merrill Lynch & Fidelity Investments & American Express






16. Another term for budget






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






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






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






20. A unit of ownership in a corporation






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






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






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






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






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






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






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






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






29. 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.'






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






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






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






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






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






35. Investors who take to take chances






36. A form of bankruptcy that allows you to erase most of your debt.






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






38. Expenses that are not fixed.






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






40. Companies that provide extensive financial data to clients






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






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






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






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






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






46. US treasury security that matures in 30 years






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






48. 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.






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






50. The amount a corporation borrowed in a bond situation