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






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






3. The profit from an investment.






4. The willingness to give up something you want now in return for something better in the future.






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






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






7. Companies that provide extensive financial data to clients






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






9. Debt obligations of corporations






10. The credit union term for a checking account.






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






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






13. Collection of investments






14. 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.






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






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






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






18. Debt obligations of corporations






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






20. The willingness to give up something you want now in return for something better in the future.






21. The credit union term for a savings account.






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






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






24. Brokers who provided little or no information to clients






25. Management of investment alternatives to maximize the growth of your portfolio






26. 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.






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






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






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






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






31. Brokers who provided little or no information to clients






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






33. Standard and Poor's and Moody's






34. The date on which the borrowed money must be repaid






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






36. The place where stocks are bought and sold.






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






38. Earning interest on interest.






39. Brokers who provide clients with analysis and opinions






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






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






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






43. Property consisting of houses and land






44. Investors who take to take chances






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






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






47. The entire amount of money you owe to lenders






48. US treasury security that matures in 30 years






49. A chosen pursuit - profession - or occupation






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