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. Earning interest on interest.






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






3. 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.'






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






5. 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.






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






7. Earning interest on interest.






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






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






10. 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.






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






12. Bold and high-risk investments






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






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






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






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






17. Investors who are afraid to make investments






18. US treasury security that matures in 30 years






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






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






21. Standard and Poor's and Moody's






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






23. The entire amount of money you owe to lenders






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






25. Debt obligations of state or local governments






26. The amount a corporation borrowed in a bond situation






27. Brokers who provide clients with analysis and opinions






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






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






30. A unit of ownership in a corporation






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






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






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






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






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






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






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






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






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






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






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






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






43. Merrill Lynch & Fidelity Investments & American Express






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






45. A unit of ownership in a corporation






46. A detailed record of your personal credit and financial transactions.






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






48. Newspapers list of securities






49. Investors who are afraid to make investments






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