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. Earning interest on interest.






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






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






4. Investors who take to take chances






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






6. 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.






7. The entire amount of money you owe to lenders






8. 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.






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






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






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






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






14. Wall Street Journal and Barron's






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






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






17. Brokers who provided little or no information to clients






18. A general and progressive increase in prices






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






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






21. The credit union term for a savings account.






22. The amount a corporation borrowed in a bond situation






23. Associated with owning stock of similar groups of businesses






24. A general and progressive increase in prices






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






26. Summary of a corporation's financial condition






27. Debt obligations of state or local governments






28. Collection of investments






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






30. 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.






31. A chosen pursuit - profession - or occupation






32. Companies that provide extensive financial data to clients






33. 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.






34. Brokers who provided little or no information to clients






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






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






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






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






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






40. The amount a corporation borrowed in a bond situation






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






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






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






44. Investors who are afraid to make investments






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






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






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






48. The maximum amount an insurance company will pay if you file a claim.






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






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