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






2. Summary of a corporation's financial condition






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






4. Expenses that are not fixed.






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






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






7. Another term for budget






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






9. 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.






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






11. 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.






12. Another term for budget






13. A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest.






14. Property consisting of houses and land






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






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






17. A chosen pursuit - profession - or occupation






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






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






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






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






22. Associated with owning stock of similar groups of businesses






23. US treasury security that matures in 30 years






24. Companies that provide extensive financial data to clients






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






26. The credit union term for a checking account.






27. A chosen pursuit - profession - or occupation






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






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






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






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






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






33. 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.






34. Merrill Lynch & Fidelity Investments & American Express






35. Investment choices that will be held for long periods






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






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






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






39. Debt obligations of corporations






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






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






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






43. Standard and Poor's and Moody's






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






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






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






47. A formal contract to repay borrowed money with interest at fixed intervals






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






49. Investors who take to take chances






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