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






2. The credit union term for a savings account.






3. The increase or decrease in the original purchase price of an investment over a period of time.






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






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






6. Investors who are afraid to make investments






7. Regular and planned investments






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






9. Debt obligations of state or local governments






10. Associated with owning stock of similar groups of businesses






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






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






13. 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.






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






15. Merrill Lynch & Fidelity Investments & American Express






16. The profit from an investment.






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






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






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






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






21. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.






22. 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.






23. Associated with owning stock of only one company






24. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






25. Investors who are afraid to make investments






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






27. Brokers who provide clients with analysis and opinions






28. Debt obligations of state or local governments






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






30. The profit from an investment.






31. Property consisting of houses and land






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






33. US treasury security that matures in 30 years






34. Another term for budget






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






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






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






38. The amount a corporation borrowed in a bond situation






39. Property consisting of houses and land






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






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






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






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






44. Brokers who provide clients with analysis and opinions






45. A general and progressive increase in prices






46. A general and progressive increase in prices






47. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






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






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






50. Merrill Lynch & Fidelity Investments & American Express