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






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






3. Debt obligations of state or local governments






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






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






6. US treasury security that matures in 30 years






7. Wall Street Journal and Barron's






8. Bold and high-risk investments






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






10. Standard and Poor's and Moody's






11. Summary of a corporation's financial condition






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






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






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






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






16. The amount a corporation borrowed in a bond situation






17. Bold and high-risk investments






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






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






20. 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.






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






22. Earning interest on interest.






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






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






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






26. The place where stocks are bought and sold.






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






28. A general and progressive increase in prices






29. Debt obligations of corporations






30. 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.






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






32. The credit union term for a checking account.






33. 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.






34. Another term for budget






35. Merrill Lynch & Fidelity Investments & American Express






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






37. Earning interest on interest.






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






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






40. Property consisting of houses and land






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






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






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






44. Regular and planned investments






45. 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.






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






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






48. Expenses that are not fixed.






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






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