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






2. Brokers who provided little or no information to clients






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






4. 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.






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






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






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






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






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






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






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






13. 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.






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






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






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






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






18. The entire amount of money you owe to lenders






19. The date on which the borrowed money must be repaid






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






21. The profit from an investment.






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






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






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






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






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






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






28. The credit union term for a savings account.






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






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






31. Companies that provide extensive financial data to clients






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






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






34. Summary of a corporation's financial condition






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






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






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






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






39. 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.






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






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






42. Investors who take to take chances






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






44. The entire amount of money you owe to lenders






45. Expenses that are not fixed.






46. A unit of ownership in a corporation






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






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






49. Summary of a corporation's financial condition






50. Charles Schwab & TD Ameritrade & E*TRADE