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






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






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






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






5. Collection of investments






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






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






8. Standard and Poor's and Moody's






9. 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.






10. 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.






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






12. The entire amount of money you owe to lenders






13. Investors who are afraid to make investments






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






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






16. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






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






18. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






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






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






24. Brokers who provided little or no information to clients






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






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






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






28. Bonds designed for investors wanting to protect again inflation losses






29. Brokers who provided little or no information to clients






30. 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.






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






32. Another term for budget






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






34. 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.






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






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






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






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






39. The chance that an investment's value will decrease






40. The credit union term for a savings account.






41. US treasury security that matures in 30 years






42. Merrill Lynch & Fidelity Investments & American Express






43. The amount a corporation borrowed in a bond situation






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






45. US treasury security that matures from a few days to one year






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






47. Pooling of money from many investors to buy a large & diverse selection of securities






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






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






50. Investors who take to take chances







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


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