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 total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.






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






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






5. Collection of investments






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






7. The place where stocks are bought and sold.






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






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






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






11. Summary of a corporation's financial condition






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






13. Merrill Lynch & Fidelity Investments & American Express






14. Debt obligations of corporations






15. Debt obligations of corporations






16. Another term for budget






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






18. Expenses that are not fixed.






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






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






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






22. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






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






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






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






26. Brokers who provided little or no information to clients






27. Wall Street Journal and Barron's






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






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






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






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






33. Brokers who provided little or no information to clients






34. 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.






35. The entire amount of money you owe to lenders






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






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






38. The amount a corporation borrowed in a bond situation






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






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






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






42. 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.






43. The place where stocks are bought and sold.






44. Investment choices that will be re-evaluated within a year or less






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






46. Brokers who provide clients with analysis and opinions






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






48. Business Weekly & Forbes & Money






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






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