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 federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.






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






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






4. Brokers who provided little or no information to clients






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






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






7. The belief - qualities - or standards that you consider important or desirable.






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






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






10. 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.'






11. Investment choices that will be held for long periods






12. The amount a corporation borrowed in a bond situation






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






14. 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.






15. Wall Street Journal and Barron's






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






17. A general and progressive increase in prices






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






19. The credit union term for a checking account.






20. US treasury security that matures in 30 years






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






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






23. 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.






24. Wall Street Journal and Barron's






25. Another term for budget






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






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






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






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






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






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






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






33. Merrill Lynch & Fidelity Investments & American Express






34. Companies that provide extensive financial data to clients






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






36. Debt obligations of state or local governments






37. Collection of investments






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






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






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






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






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






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






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






45. Summary of a corporation's financial condition






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






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






48. The credit union term for a checking account.






49. Companies that provide extensive financial data to clients






50. 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.