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






2. Earning interest on interest.






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






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






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






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






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






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






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






10. 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.






11. 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.






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






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






14. Standard and Poor's and Moody's






15. A general and progressive increase in prices






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






17. Brokers who provided little or no information to clients






18. The profit from an investment.






19. Newspapers list of securities






20. Regular and planned investments






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






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






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






24. 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.






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






26. 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.'






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






28. Amount of money that is set aside for future purchases






29. Property consisting of houses and land






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






31. Standard and Poor's and Moody's






32. The place where stocks are bought and sold.






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






34. The entire amount of money you owe to lenders






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






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






37. 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.






38. 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.






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






40. A chosen pursuit - profession - or occupation






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






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






43. Associated with owning stock of similar groups of businesses






44. Regular and planned investments






45. The amount of money someone is willing to loan you.






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






47. Debt obligations of corporations






48. 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.






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






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