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






2. Newspapers list of securities






3. Charles Schwab & TD Ameritrade & E*TRADE






4. Summary of a corporation's financial condition






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






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






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






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






9. Standard and Poor's and Moody's






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






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






12. 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.






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






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






16. Losses in an investment as a result of the business cycle






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






18. Investing with a series of regular payments; usually associated with life insurance companies






19. Brokers who provided little or no information to clients






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






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






22. Another term for budget






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






24. Investors who are afraid to make investments






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






26. Losses in an investment as a result of the business cycle






27. Investing with a series of regular payments; usually associated with life insurance companies






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






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






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






31. Debt obligations of state or local governments






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






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






34. Earning interest on interest.






35. A unit of ownership in a corporation






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






37. The entire amount of money you owe to lenders






38. 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.






39. Newspapers list of securities






40. Standard and Poor's and Moody's






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






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






43. Expenses that are not fixed.






44. Brokers who provided little or no information to clients






45. 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.






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






47. The profit from an investment.






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






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






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