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






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






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






4. US treasury security that matures in 30 years






5. A form of bankruptcy that allows you to erase most of your debt.






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






7. 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.






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






9. Another term for budget






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






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






12. Conservative investing; used when you have 'excess' savings






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






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






15. Companies that provide extensive financial data to clients






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






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






18. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller






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






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






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






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






23. Newspapers list of securities






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






25. Property consisting of houses and land






26. The entire amount of money you owe to lenders






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






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






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 goal to be achieved within the next three months.






31. Investors who take to take chances






32. Debt obligations of state or local governments






33. A unit of ownership in a corporation






34. Another term for budget






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






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






37. Investors who are afraid to make investments






38. Charles Schwab & TD Ameritrade & E*TRADE






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






40. Business Weekly & Forbes & Money






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






42. Standard and Poor's and Moody's






43. The credit union term for a savings account.






44. 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.






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






46. Business Weekly & Forbes & Money






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






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






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






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