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. Standard and Poor's and Moody's






2. 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.






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






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






5. Debt obligations of state or local governments






6. Bonds designed for investors wanting to protect again inflation losses






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






8. Summary of a corporation's financial condition






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






10. Collection of investments






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






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






13. 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.






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






15. Another term for budget






16. Companies that provide extensive financial data to clients






17. Associated with owning stock of only one company






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






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






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






21. Earning interest on interest.






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






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






24. A detailed record of your personal credit and financial transactions.






25. The place where stocks are bought and sold.






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






27. Bonds designed for investors wanting to protect again inflation losses






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






29. 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.






30. A general and progressive increase in prices






31. A formal contract to repay borrowed money with interest at fixed intervals






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






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






34. The entire amount of money you owe to lenders






35. 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.






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






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






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






39. Movement of money you receive and the money you spend






40. The amount a corporation borrowed in a bond situation






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






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






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






44. Spreading risk among many types of investments; one way to minimize risk






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






46. Investment choices that will be held for long periods






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






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






49. The credit union term for a checking account.






50. The profit from an investment.