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






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






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






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






5. Management of investment alternatives to maximize the growth of your portfolio






6. A general and progressive increase in prices






7. 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.






8. Newspapers list of securities






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






10. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.






11. Charles Schwab & TD Ameritrade & E*TRADE






12. Debt obligations of corporations






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






14. 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.






15. The credit union term for a savings account.






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






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






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






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






20. Newspapers list of securities






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






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






23. Standard and Poor's and Moody's






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






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






26. 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.






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






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






29. Investors who take to take chances






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






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






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






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






34. Reducing investment risk by putting money in several different types of investments.






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






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






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






38. Regular and planned investments






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






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






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






42. Bonds designed for investors wanting to protect again inflation losses






43. Standard and Poor's and Moody's






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






45. Earning interest on interest.






46. 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.






47. US treasury security that matures in 30 years






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






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






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