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






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






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






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






6. Brokers who provided little or no information to clients






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






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






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






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






11. The credit union term for a checking account.






12. Investment choices that will be held for long periods






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






14. Charles Schwab & TD Ameritrade & E*TRADE






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






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






17. Summary of a corporation's financial condition






18. 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.






19. Debt obligations of corporations






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






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






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






23. Debt obligations of corporations






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






25. A general and progressive increase in prices






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






27. Collection of investments






28. Wall Street Journal and Barron's






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






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






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






32. Another term for budget






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






34. Investment choices that will be held for long periods






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






36. Investors who are afraid to make investments






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






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






39. Debt obligations of state or local governments






40. 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.






41. Earning interest on interest.






42. 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.






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






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






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






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






47. 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.






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






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






50. Associated with owning stock of only one company