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 formal contract to repay borrowed money with interest at fixed intervals






2. The probability that injury - damage - or loss will occur.






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






4. A summary of a person's borrowing and repayment history.






5. Associated with owning stock of only one company






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






7. Associated with owning stock of similar groups of businesses






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






9. Newspapers list of securities






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






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






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






13. US treasury security that matures in 30 years






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






15. Companies that provide extensive financial data to clients






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






17. 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.






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






19. Brokers who provided little or no information to clients






20. The profit from an investment.






21. Collection of investments






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






23. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller






24. Debt obligations of corporations






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






26. The probability that injury - damage - or loss will occur.






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






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






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






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






31. 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.






32. 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.






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






34. Brokers who provided little or no information to clients






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






36. The credit union term for a savings account.






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






38. A bank account against which the depositor can draw checks payable on demand.






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






40. 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.






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






42. Merrill Lynch & Fidelity Investments & American Express






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






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






45. Associated with owning stock of only one company






46. A summary of a person's borrowing and repayment history.






47. Investment choices that will be held for long periods






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






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






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