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. Collection of investments






2. A unit of ownership in a corporation






3. 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.






4. Companies that provide extensive financial data to clients






5. Associated with owning stock of similar groups of businesses






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






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






8. Charles Schwab & TD Ameritrade & E*TRADE






9. Investment choices that will be held for long periods






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






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






12. 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.






13. A general and progressive increase in prices






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






15. Newspapers list of securities






16. Investors who are afraid to make investments






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






18. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.






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






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






21. Associated with owning stock of similar groups of businesses






22. The credit union term for a checking account.






23. The entire amount of money you owe to lenders






24. Brokers who provide clients with analysis and opinions






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






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






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






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






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






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






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






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






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






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






35. The willingness to give up something you want now in return for something better in the future.






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






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






38. Another term for budget






39. US treasury security that matures in 30 years






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






41. Debt obligations of corporations






42. Uncontrollable and unpredictable events that cause an investment to lose value






43. 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.






44. Low-priced stocks of small companies that have no track record






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






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






47. Another term for budget






48. 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.






49. Companies that provide extensive financial data to clients






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