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. The date on which the borrowed money must be repaid






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






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






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






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






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






8. The place where stocks are bought and sold.






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






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






11. Property consisting of houses and land






12. 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.






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






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






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






16. 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.'






17. The credit union term for a savings account.






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






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






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






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






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






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






24. Regular and planned investments






25. Merrill Lynch & Fidelity Investments & American Express






26. US treasury security that matures from a few days to one year






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






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






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






30. Merrill Lynch & Fidelity Investments & American Express






31. Associated with owning stock of only one company






32. Investors who take to take chances






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






34. Property consisting of houses and land






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






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






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






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






39. The amount a corporation borrowed in a bond situation






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






41. The chance that an investment's value will decrease






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






43. Debt obligations of corporations






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






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






46. A general and progressive increase in prices






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






48. Earning interest on interest.






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






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