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. Uncontrollable and unpredictable events that cause an investment to lose value






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






4. 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.






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






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






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






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






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






10. Another term for budget






11. A chosen pursuit - profession - or occupation






12. Bold and high-risk investments






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






14. Maximum amount of credit a lender will extend to a customer.






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






16. Newspapers list of securities






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






18. The credit union term for a checking account.






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






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






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






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






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






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






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






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






27. Summary of a corporation's financial condition






28. Maximum amount of credit a lender will extend to a customer.






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






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






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






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






33. Movement of money you receive and the money you spend






34. Earning interest on interest.






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






36. The place where stocks are bought and sold.






37. 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.






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






39. 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.






40. Charles Schwab & TD Ameritrade & E*TRADE






41. Uncontrollable and unpredictable events that cause an investment to lose value






42. 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.






43. Investment choices that will be held for long periods






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






45. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






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






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






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






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






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