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. Newspapers list of securities






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






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






4. Investors who are afraid to make investments






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






6. 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.






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






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






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






10. 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.






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






12. 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.'






13. Earning interest on interest.






14. Merrill Lynch & Fidelity Investments & American Express






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






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






17. The entire amount of money you owe to lenders






18. Debt obligations of corporations






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






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






21. The increase or decrease in the original purchase price of an investment over a period of time.






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






23. 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.






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






25. Standard and Poor's and Moody's






26. Property consisting of houses and land






27. 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.






28. Brokers who provide clients with analysis and opinions






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






30. Regular and planned investments






31. 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.






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






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






34. Another term for budget






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






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






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






38. The increase or decrease in the original purchase price of an investment over a period of time.






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






40. Investment choices that will be held for long periods






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






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






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. 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.






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






46. A general and progressive increase in prices






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






48. Bold and high-risk investments






49. Is a numerical rating - based on credit report information that represents a person's level of creditworthiness






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