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. Investors who take to take chances






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






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






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






5. Earning interest on interest.






6. 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.






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






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






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






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






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






12. The amount a corporation borrowed in a bond situation






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






14. Debt obligations of corporations






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






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. US treasury security that matures in 30 years






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






19. 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.






20. Collection of investments






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






22. A chosen pursuit - profession - or occupation






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






24. Investors who are afraid to make investments






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






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






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






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






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






30. The amount a corporation borrowed in a bond situation






31. Another term for budget






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






33. Bold and high-risk investments






34. Another term for budget






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






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






37. The place where stocks are bought and sold.






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






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






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






41. 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.






42. Companies that provide extensive financial data to clients






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






44. Debt obligations of corporations






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






46. 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.






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






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






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






50. Investors who take to take chances