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






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






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






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






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






6. The profit from an investment.






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






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. Associated with owning stock of only one company






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






11. A chosen pursuit - profession - or occupation






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






13. Bold and high-risk investments






14. Summary of a corporation's financial condition






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






16. Brokers who provide clients with analysis and opinions






17. Newspapers list of securities






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






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






20. The credit union term for a checking account.






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






22. Contacts to buy and sell commodities or stocks for a specific price on a specific date






23. The credit union term for a savings account.






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






25. Property consisting of houses and land






26. Debt obligations of corporations






27. Investors who are afraid to make investments






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






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






30. 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.






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






32. The date on which the borrowed money must be repaid






33. Debt obligations of state or local governments






34. The entire amount of money you owe to lenders






35. Investment choices that will be held for long periods






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






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






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






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






40. 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.






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






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






43. 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.






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






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






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






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






48. Another term for budget






49. Collection of investments






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