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






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






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






4. Investment choices that will be held for long periods






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






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






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






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






9. Associated with owning stock of similar groups of businesses






10. Companies that provide extensive financial data to clients






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






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






13. The credit union term for a checking account.






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






15. Investors who take to take chances






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






17. 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.'






18. Expenses that are not fixed.






19. Brokers who provided little or no information to clients






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






21. The amount a corporation borrowed in a bond situation






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






23. 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.






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






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






26. 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.'






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






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






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






30. Investment choices that will be re-evaluated within a year or less






31. The credit union term for a checking account.






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






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






34. 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.






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






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






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






38. 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.






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






40. The entire amount of money you owe to lenders






41. Another term for budget






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






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






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






45. A general and progressive increase in prices






46. Expenses that are not fixed.






47. Associated with owning stock of similar groups of businesses






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






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






50. Charles Schwab & TD Ameritrade & E*TRADE