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






2. Charles Schwab & TD Ameritrade & E*TRADE






3. Expenses that are not fixed.






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






5. The entire amount of money you owe to lenders






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






7. Collection of investments






8. 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.






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






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






11. Investors who take to take chances






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






13. Wall Street Journal and Barron's






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






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






16. Newspapers list of securities






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






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






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






20. US treasury security that matures in 30 years






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






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






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






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






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






26. The amount a corporation borrowed in a bond situation






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






28. The profit from an investment.






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






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






31. A spending plan for managing money during a given period of time.






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






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






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






35. Brokers who provide clients with analysis and opinions






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






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






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






39. Companies that provide extensive financial data to clients






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






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






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






43. Debt obligations of state or local governments






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






45. Standard and Poor's and Moody's






46. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.






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






48. Expenses that are not fixed.






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






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