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






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






3. The amount a corporation borrowed in a bond situation






4. Standard and Poor's and Moody's






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






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






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






8. A government sector that requires all public corporations to make annual reports available to their stockholders






9. 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.






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






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






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






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






14. A general and progressive increase in prices






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






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






17. Earning interest on interest.






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






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






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






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






22. Earning interest on interest.






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






24. The credit union term for a savings account.






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






26. Associated with owning stock of only one company






27. 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.'






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






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






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






31. 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.






32. 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.






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






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






35. A unit of ownership in a corporation






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






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






38. Bold and high-risk investments






39. A unit of ownership in a corporation






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






41. 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.






42. The entire amount of money you owe to lenders






43. Investors who are afraid to make investments






44. The amount a corporation borrowed in a bond situation






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






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






47. US treasury security that matures in 30 years






48. The profit from an investment.






49. 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.






50. Property consisting of houses and land