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






2. Summary of a corporation's financial condition






3. Associated with owning stock of only one company






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






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






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






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






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






10. The credit union term for a savings account.






11. A general and progressive increase in prices






12. The entire amount of money you owe to lenders






13. 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.






14. Debt obligations of state or local governments






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






16. Companies that provide extensive financial data to clients






17. US treasury security that matures in 30 years






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






19. The credit union term for a checking account.






20. The increase or decrease in the original purchase price of an investment over a period of time.






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






22. Property consisting of houses and land






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






24. Charles Schwab & TD Ameritrade & E*TRADE






25. 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.






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






27. Associated with owning stock of similar groups of businesses






28. Newspapers list of securities






29. A chosen pursuit - profession - or occupation






30. Investors who take to take chances






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






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






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






34. The credit union term for a checking account.






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






36. The profit from an investment.






37. 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.'






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






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






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






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






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






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






44. Debt obligations of state or local governments






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






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






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






48. Reducing investment risk by putting money in several different types of investments.






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






50. 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.