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 credit union term for a checking account.






2. 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.






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






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






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






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






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






8. Investors who are afraid to make investments






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






10. Charles Schwab & TD Ameritrade & E*TRADE






11. The profit from an investment.






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






13. Collection of investments






14. Investors who are afraid to make investments






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






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






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






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






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






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






21. Regular and planned investments






22. The place where stocks are bought and sold.






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






24. Summary of a corporation's financial condition






25. Newspapers list of securities






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






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






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






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






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






31. Brokers who provided little or no information to clients






32. Charles Schwab & TD Ameritrade & E*TRADE






33. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.






34. Another term for budget






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






36. 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.






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






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






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






40. The amount a corporation borrowed in a bond situation






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






42. Expenses that are not fixed.






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






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






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






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






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






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






49. Debt obligations of state or local governments






50. Investors who take to take chances