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






2. Summary of a corporation's financial condition






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






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






5. Earning interest on interest.






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






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






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






9. Business Weekly & Forbes & Money






10. The profit from an investment.






11. 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.






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






13. Property consisting of houses and land






14. 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.'






15. Movement of money you receive and the money you spend






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






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






18. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






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






20. Fee on credit card for making charges above your credit limit.






21. US treasury security that matures in 30 years






22. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






23. The credit union term for a savings account.






24. Expenses that are not fixed.






25. Associated with owning stock of only one company






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






27. Low-priced stocks of small companies that have no track record






28. 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.






29. Wall Street Journal and Barron's






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






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






32. Associated with owning stock of only one company






33. Movement of money you receive and the money you spend






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






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






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






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






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






39. 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.






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






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






42. A general and progressive increase in prices






43. The credit union term for a checking account.






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






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






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






47. US treasury security that matures in 30 years






48. Companies that provide extensive financial data to clients






49. Bold and high-risk investments






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