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






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






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






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






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






6. A general and progressive increase in prices






7. The amount a corporation borrowed in a bond situation






8. Brokers who provided little or no information to clients






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






10. Contacts to buy and sell commodities or stocks for a specific price on a specific date






11. Companies that provide extensive financial data to clients






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






13. Smaller decisions that can result from a major decision.






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






15. The profit from an investment.






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






17. Associated with owning stock of similar groups of businesses






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






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






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






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






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






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






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






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






26. Bold and high-risk investments






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






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






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






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






31. Charles Schwab & TD Ameritrade & E*TRADE






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






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






34. US treasury security that matures in 30 years






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






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






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






38. Debt obligations of corporations






39. Investment choices that will be held for long periods






40. Actions that the government might take that would reduce the value of an investment






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






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






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






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






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






46. Investors who take to take chances






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






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






49. Wall Street Journal and Barron's






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