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






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






3. The entire amount of money you owe to lenders






4. Bold and high-risk investments






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






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






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






8. Newspapers list of securities






9. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this






10. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






15. A general and progressive increase in prices






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






17. Associated with owning stock of similar groups of businesses






18. 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.






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






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






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






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






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






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






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






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






28. 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.






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






30. Earning interest on interest.






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






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






33. Standard and Poor's and Moody's






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






35. Investors who are afraid to make investments






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






37. 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.






38. Standard and Poor's and Moody's






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






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






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






42. Property consisting of houses and land






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






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






45. 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.'






46. The credit union term for a checking account.






47. 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.






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






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






50. Associated with owning stock of similar groups of businesses