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






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






3. A general and progressive increase in prices






4. Associated with owning stock of only one company






5. Bold and high-risk investments






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






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






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






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






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






11. Associated with owning stock of similar groups of businesses






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






13. Debt obligations of corporations






14. 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.






15. The credit union term for a checking account.






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






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






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






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






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






21. Summary of a corporation's financial condition






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






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






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






25. The profit from an investment.






26. A general and progressive increase in prices






27. The credit union term for a checking account.






28. 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.






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






30. 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.'






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






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






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






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






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






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






37. The amount of money someone is willing to loan you.






38. 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.






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






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






41. 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.






42. Companies that provide extensive financial data to clients






43. A unit of ownership in a corporation






44. Property consisting of houses and land






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






46. Merrill Lynch & Fidelity Investments & American Express






47. Bold and high-risk investments






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






49. The belief - qualities - or standards that you consider important or desirable.






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