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






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






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






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






5. Associated with owning stock of only one company






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






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






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






9. Associated with owning stock of similar groups of businesses






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






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






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






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






14. Earning interest on interest.






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






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






17. The date on which the borrowed money must be repaid






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






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






20. Investment choices that will be held for long periods






21. Investors who take to take chances






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. 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. Property consisting of houses and land






25. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






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






30. 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.'






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






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






33. A chosen pursuit - profession - or occupation






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






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






36. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.






37. Collection of investments






38. Standard and Poor's and Moody's






39. 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.






40. Business Weekly & Forbes & Money






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






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






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






44. Associated with owning stock of similar groups of businesses






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






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






47. Wall Street Journal and Barron's






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






49. Expenses that are not fixed.






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