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 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.






2. 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.






3. 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.'






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






5. Property consisting of houses and land






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






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






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






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






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






11. Investors who are afraid to make investments






12. Investors who take to take chances






13. Wall Street Journal and Barron's






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






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






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






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






18. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.






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






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






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






22. Earning interest on interest.






23. A general and progressive increase in prices






24. The entire amount of money you owe to lenders






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






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






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






28. Another term for budget






29. 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.






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






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






32. US treasury security that matures in 30 years






33. 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.






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






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






36. Property consisting of houses and land






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






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






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






40. Merrill Lynch & Fidelity Investments & American Express






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






42. A general and progressive increase in prices






43. Brokers who provided little or no information to clients






44. Standard and Poor's and Moody's






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






46. The place where stocks are bought and sold.






47. The profit from an investment.






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






49. 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.






50. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller