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 card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'






2. An amount that credit card companies can charge for the use of a credit card.






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






4. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this






5. Investors who are afraid to make investments






6. A unit of ownership in a corporation






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






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






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






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






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






12. The place where stocks are bought and sold.






13. The entire amount of money you owe to lenders






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






15. A chosen pursuit - profession - or occupation






16. The place where stocks are bought and sold.






17. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date






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






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






20. Brokers who provided little or no information to clients






21. US treasury security that matures from a few days to one year






22. Companies that provide extensive financial data to clients






23. Investment choices that will be re-evaluated within a year or less






24. 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.






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






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






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






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






29. Earning interest on interest.






30. Debt obligations of state or local governments






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






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






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






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






35. 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.






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






37. Property consisting of houses and land






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






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






40. 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.






41. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this






42. 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.






43. The value of What is given up when you choose one option over another.






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






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






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






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






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






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






50. Another term for budget