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 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.






2. The belief - qualities - or standards that you consider important or desirable.






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






4. Debt obligations of state or local governments






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






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






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






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






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






10. Investment choices that will be held for long periods






11. Pooling of money from many investors to buy a large & diverse selection of securities






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






13. Collection of investments






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






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






16. 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.






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






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






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






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






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






22. Associated with owning stock of similar groups of businesses






23. Debt obligations of corporations






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






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






26. Expenses that are not fixed.






27. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.






28. Summary of a corporation's financial condition






29. Expenses that are not fixed.






30. Merrill Lynch & Fidelity Investments & American Express






31. The place where stocks are bought and sold.






32. Charles Schwab & TD Ameritrade & E*TRADE






33. Earning interest on interest.






34. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date






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






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






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






38. A chosen pursuit - profession - or occupation






39. 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.






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






41. Newspapers list of securities






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






43. Business Weekly & Forbes & Money






44. 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.






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






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






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






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






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






50. Merrill Lynch & Fidelity Investments & American Express