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. 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.






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






3. 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.






4. Things that add comfort and pleasure to your life but you can live without if you need to.






5. Debt obligations of state or local governments






6. Debt obligations of corporations






7. A unit of ownership in a corporation






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






9. Associated with owning stock of only one company






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






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






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






13. The amount a corporation borrowed in a bond situation






14. Associated with owning stock of only one company






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






16. The credit union term for a savings account.






17. Earning interest on interest.






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






19. Spreading risk among many types of investments; one way to minimize risk






20. The entire amount of money you owe to lenders






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






22. 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.






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






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






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






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






27. Investors who take to take chances






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






29. Bold and high-risk investments






30. A chosen pursuit - profession - or occupation






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






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






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






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






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






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






37. Brokers who provide clients with analysis and opinions






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






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






40. Merrill Lynch & Fidelity Investments & American Express






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. The date on which the borrowed money must be repaid






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






44. Business Weekly & Forbes & Money






45. The setting aside of money for future use or other investments






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. Charles Schwab & TD Ameritrade & E*TRADE






48. The credit union term for a checking account.






49. Wall Street Journal and Barron's






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