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. The date on which the borrowed money must be repaid






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






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






4. Wall Street Journal and Barron's






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






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






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






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






9. 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.






10. Charles Schwab & TD Ameritrade & E*TRADE






11. Debt obligations of corporations






12. Associated with owning stock of similar groups of businesses






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






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






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






16. A summary of a person's borrowing and repayment history.






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






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






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






20. 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.






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






22. Losses in an investment as a result of the business cycle






23. A chosen pursuit - profession - or occupation






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






25. The place where stocks are bought and sold.






26. 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.






27. Investors who take to take chances






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






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






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






31. A unit of ownership in a corporation






32. A summary of a person's borrowing and repayment history.






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






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






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






36. A goal to be achieved within the next three months.






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






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






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






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






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






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






43. Regular and planned investments






44. Merrill Lynch & Fidelity Investments & American Express






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






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






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






48. 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.






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






50. Standard and Poor's and Moody's