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






3. The probability that injury - damage - or loss will occur.






4. Brokers who provided little or no information to clients






5. Earning interest on interest.






6. Companies that provide extensive financial data to clients






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






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






9. 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.






10. 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.'






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






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






13. The profit from an investment.






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






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






16. Summary of a corporation's financial condition






17. A chosen pursuit - profession - or occupation






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






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






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






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






22. Companies that provide extensive financial data to clients






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






24. 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.






25. Standard and Poor's and Moody's






26. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






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






28. A certificate documenting the shareholder's ownership in the corporation






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






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






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






32. Investors who are afraid to make investments






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






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






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






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






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






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






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






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






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






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






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






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






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






47. Investors who are afraid to make investments






48. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






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






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