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






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






3. Brokers who provide clients with analysis and opinions






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






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






7. 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.






8. Summary of a corporation's financial condition






9. Property consisting of houses and land






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






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






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






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






14. 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.






15. 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.






16. The credit union term for a savings account.






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






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






19. Merrill Lynch & Fidelity Investments & American Express






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






21. Bold and high-risk investments






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






23. Charles Schwab & TD Ameritrade & E*TRADE






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






25. Expenses that aren't paid every month and can be either fixed or variable.






26. The process of dealing with the chance of a potential personal or financial loss.






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






28. The profit from an investment.






29. Standard and Poor's and Moody's






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






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






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






33. Expenses that are not fixed.






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






35. Investors who are afraid to make investments






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






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






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






39. Debt obligations of state or local governments






40. Earning interest on interest.






41. 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.






42. The entire amount of money you owe to lenders






43. The credit union term for a checking account.






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






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






46. 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.






47. Bold and high-risk investments






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






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






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