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






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






3. Bold and high-risk investments






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






5. The portion of the profits paid to the shareholders of a company.






6. The profit from an investment.






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






8. 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.






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






10. Expenses that are not fixed.






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






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






13. Newspapers list of securities






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






15. Investors who are afraid to make investments






16. Investors who take to take chances






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






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






19. The profit from an investment.






20. 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.






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






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






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






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






25. Business Weekly & Forbes & Money






26. Charles Schwab & TD Ameritrade & E*TRADE






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






28. A unit of ownership in a corporation






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






30. Earning interest on interest.






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






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






33. A general and progressive increase in prices






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






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






36. The credit union term for a savings account.






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






38. Earning interest on interest.






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






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






41. Debt obligations of state or local governments






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






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






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






45. 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.






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






47. Associated with owning stock of similar groups of businesses






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






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






50. The credit union term for a checking account.