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Financial Literacy Basics

  • Answer 50 questions in 15 minutes.
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  • 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 general and progressive increase in prices

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

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

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

5. The amount a corporation borrowed in a bond situation

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

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

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

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

10. Charles Schwab & TD Ameritrade & E*TRADE

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

12. Earning interest on interest.

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

14. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller

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

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

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

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

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

20. Investors who are afraid to make investments

21. Property consisting of houses and land

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

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

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

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

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

27. Newspapers list of securities

28. US treasury security that matures in 30 years

29. 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.

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

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

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

33. Standard and Poor's and Moody's

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

35. US treasury security that matures in 30 years

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

37. The profit from an investment.

38. 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.

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

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

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

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

43. US treasury security that matures in 2 & 5 & or 10 years

44. A unit of ownership in a corporation

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

46. Merrill Lynch & Fidelity Investments & American Express

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

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

49. Summary of a corporation's financial condition

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