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. Movement of money you receive and the money you spend






2. Brokers who provided little or no information to clients






3. 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.






4. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller






5. People trained to give investment advise based on your goals & age & lifestyle & etc






6. Merrill Lynch & Fidelity Investments & American Express






7. US treasury security that matures in 30 years






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






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






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






11. Expenses that are not fixed.






12. Debt obligations of corporations






13. The credit union term for a checking account.






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






15. 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.






16. Regular and planned investments






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






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






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






20. Investment choices that will be held for long periods






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






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






23. 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.






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






25. The maximum amount an insurance company will pay if you file a claim.






26. The credit union term for a savings account.






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






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






29. The credit union term for a checking account.






30. Expenses that are not fixed.






31. Associated with owning stock of similar groups of businesses






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






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






34. Conservative investing; used when you have 'excess' savings






35. 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.






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






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






38. The profit from an investment.






39. 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.






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






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






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






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






44. Bold and high-risk investments






45. Newspapers list of securities






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






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






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






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






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