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






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






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






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






5. Investors who are afraid to make investments






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






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






8. Investors who are afraid to make investments






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






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






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






12. A general and progressive increase in prices






13. A general and progressive increase in prices






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






15. A chosen pursuit - profession - or occupation






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






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






18. Bold and high-risk investments






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






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






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






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






23. 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.






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






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






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






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






28. Newspapers list of securities






29. Another term for budget






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






31. The entire amount of money you owe to lenders






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






33. Regular and planned investments






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






35. Property consisting of houses and land






36. The credit union term for a savings account.






37. Merrill Lynch & Fidelity Investments & American Express






38. Debt obligations of state or local governments






39. Spreading risk among many types of investments; one way to minimize risk






40. US treasury security that matures from a few days to one year






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






42. The setting aside of money for future use or other investments






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






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






45. Business Weekly & Forbes & Money






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






47. 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.






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






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






50. 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.'