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. Debt obligations of corporations






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






3. A chosen pursuit - profession - or occupation






4. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.






5. Earning interest on interest.






6. Debt obligations of corporations






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






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






9. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






13. 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.'






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






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






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






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






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






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






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






21. The entire amount of money you owe to lenders






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






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






24. Brokers who provided little or no information to clients






25. 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.






26. Companies that provide extensive financial data to clients






27. Regular and planned investments






28. Expenses that are not fixed.






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






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






31. 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.






32. The credit union term for a checking account.






33. A financial institution owned by its members that provides savings and checking accounts and other services to its membership at low fees.






34. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






35. A bank account against which the depositor can draw checks payable on demand.






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






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






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






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






40. 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.






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






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






43. 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.






44. Expenses that are not fixed.






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






46. Bold and high-risk investments






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






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






49. Earning interest on interest.






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