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






2. Property consisting of houses and land






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






4. 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.






5. Earning interest on interest.






6. Wall Street Journal and Barron's






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






8. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.






9. Summary of a corporation's financial condition






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






11. Debt obligations of corporations






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






13. Bold and high-risk investments






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






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






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






17. 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.






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






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






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






21. Bold and high-risk investments






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






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






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






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






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






27. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.






28. 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.






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






30. 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.






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






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






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






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






35. The credit union term for a checking account.






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






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






38. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.






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






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






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






42. A general and progressive increase in prices






43. The entire amount of money you owe to lenders






44. The amount a corporation borrowed in a bond situation






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






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






47. Associated with owning stock of similar groups of businesses






48. A unit of ownership in a corporation






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






50. US treasury security that matures in 30 years