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 entire amount of money you owe to lenders






2. Business Weekly & Forbes & Money






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






4. Investment choices that will be held for long periods






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






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






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






8. Associated with owning stock of only one company






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






10. Collection of investments






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






13. Property consisting of houses and land






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






15. Bold and high-risk investments






16. 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.






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






18. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






23. The increase or decrease in the original purchase price of an investment over a period of time.






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. Companies that provide extensive financial data to clients






26. Charles Schwab & TD Ameritrade & E*TRADE






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






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






29. Investors who are afraid to make investments






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






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






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






33. Summary of a corporation's financial condition






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






35. Bold and high-risk investments






36. The profit from an investment.






37. 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.






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






39. The place where stocks are bought and sold.






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






41. Newspapers list of securities






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






43. Expenses that are not fixed.






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






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






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






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






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






49. Standard and Poor's and Moody's






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