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






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






4. The credit union term for a savings account.






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






6. Charles Schwab & TD Ameritrade & E*TRADE






7. A legal process to get out of debt when you can no longer make all your required payments.






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






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






10. A general and progressive increase in prices






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






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






13. Charles Schwab & TD Ameritrade & E*TRADE






14. Another term for budget






15. People trained to give investment advise based on your goals & age & lifestyle & etc






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






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






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






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






20. Associated with owning stock of similar groups of businesses






21. Collection of investments






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






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






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






25. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.






26. A general and progressive increase in prices






27. The place where stocks are bought and sold.






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






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






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






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






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






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






34. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions.






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






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






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






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






39. The entire amount of money you owe to lenders






40. Regular and planned investments






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






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






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






44. Summary of a corporation's financial condition






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






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






47. A form of bankruptcy that allows you to erase most of your debt.






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






49. Standard and Poor's and Moody's






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