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






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






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






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






5. Investors who are afraid to make investments






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






7. Collection of investments






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






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






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






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






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






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






14. Investment choices that will be held for long periods






15. The place where stocks are bought and sold.






16. 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.






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






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






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






20. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.






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






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






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






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






25. US treasury security that matures in 2 & 5 & or 10 years






26. Summary of a corporation's financial condition






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






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






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






30. Property consisting of houses and land






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






32. The entire amount of money you owe to lenders






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






34. The amount a corporation borrowed in a bond situation






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






36. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.






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






38. Bold and high-risk investments






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






40. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.






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






42. A unit of ownership in a corporation






43. A term that describes investments on which earnings are not taxed until retirement






44. Charles Schwab & TD Ameritrade & E*TRADE






45. Brokers who provide clients with analysis and opinions






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






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






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






49. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.






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