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






2. Debt obligations of state or local governments






3. A technique used for estimating the number of years required to double your money at a given rate






4. US treasury security that matures in 30 years






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






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






7. The profit from an investment.






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






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






10. The credit union term for a savings account.






11. Wall Street Journal and Barron's






12. Things that add comfort and pleasure to your life but you can live without if you need to.






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






14. 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.






15. Bold and high-risk investments






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






17. 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.'






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






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






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






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






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






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






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






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






26. US treasury security that matures in 30 years






27. Debt obligations of state or local governments






28. Investment choices that will be held for long periods






29. Charles Schwab & TD Ameritrade & E*TRADE






30. Investors who take to take chances






31. A general and progressive increase in prices






32. The credit union term for a checking account.






33. Associated with owning stock of only one company






34. Wall Street Journal and Barron's






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






36. Expenses that are not fixed.






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






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






39. Companies that provide extensive financial data to clients






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






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






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






43. 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.






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






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






46. Brokers who provide clients with analysis and opinions






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






48. Merrill Lynch & Fidelity Investments & American Express






49. The entire amount of money you owe to lenders






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