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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. 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.






2. US treasury security that matures in 30 years






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






4. Newspapers list of securities






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






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






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






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






9. Another term for budget






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






11. Brokers who provided little or no information to clients






12. Merrill Lynch & Fidelity Investments & American Express






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






14. Investors who are afraid to make investments






15. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.






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






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






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






19. Merrill Lynch & Fidelity Investments & American Express






20. Charles Schwab & TD Ameritrade & E*TRADE






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






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






23. US treasury security that matures in 30 years






24. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.






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






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






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






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






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






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






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






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






33. A unit of ownership in a corporation






34. Investors who take to take chances






35. Companies that provide extensive financial data to clients






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






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






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






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






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






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






42. Expenses that are not fixed.






43. 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.'






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






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






46. Charles Schwab & TD Ameritrade & E*TRADE






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






48. Debt obligations of corporations






49. Business Weekly & Forbes & Money






50. Collection of investments






Can you answer 50 questions in 15 minutes?



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