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 state or local governments






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






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






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






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






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






7. A summary of a person's borrowing and repayment history.






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






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






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






11. People trained to give investment advise based on your goals & age & lifestyle & etc






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






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






14. The profit from an investment.






15. 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.






16. A general and progressive increase in prices






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






18. Regular and planned investments






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






20. The place where stocks are bought and sold.






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






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






23. 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.






24. Debt obligations of state or local governments






25. Investment choices that will be held for long periods






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






27. Collection of investments






28. Associated with owning stock of only one company






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






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






31. 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.






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






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






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






35. Investors who take to take chances






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






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






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






39. A general and progressive increase in prices






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






41. Earning interest on interest.






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






43. The credit union term for a savings account.






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






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






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






47. Another term for budget






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






49. Newspapers list of securities






50. The probability that injury - damage - or loss will occur.