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. A form of bankruptcy that allows you to erase most of your debt.






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






3. Charles Schwab & TD Ameritrade & E*TRADE






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






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






6. Regular and planned investments






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






8. The credit union term for a savings account.






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






10. Brokers who provided little or no information to clients






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






12. The use of long-term savings to earn a financial return






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






14. 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.






15. 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.






16. 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.






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






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






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






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






21. Merrill Lynch & Fidelity Investments & American Express






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






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






24. The use of long-term savings to earn a financial return






25. A form of bankruptcy that allows you to erase most of your debt.






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






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






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






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






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






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






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






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






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






35. A chosen pursuit - profession - or occupation






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






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






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






39. Regular and planned investments






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






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






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






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






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






45. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






46. A unit of ownership in a corporation






47. Wall Street Journal and Barron's






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






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






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