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. Smaller decisions that can result from a major decision.






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






3. 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.






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






5. A chosen pursuit - profession - or occupation






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






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






8. US treasury security that matures in 2 & 5 & or 10 years






9. Business Weekly & Forbes & Money






10. Earning interest on interest.






11. Wall Street Journal and Barron's






12. Investors who are afraid to make investments






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






14. The place where stocks are bought and sold.






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






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






17. The date on which the borrowed money must be repaid






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






19. 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.






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






21. Low-priced stocks of small companies that have no track record






22. Expenses that are not fixed.






23. An amount that credit card companies can charge for the use of a credit card.






24. The place where stocks are bought and sold.






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






26. A unit of ownership in a corporation






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






28. 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.






29. Earning interest on interest.






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






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






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






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






34. Investors who take to take chances






35. The entire amount of money you owe to lenders






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






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






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






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






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






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






42. The date on which the borrowed money must be repaid






43. Brokers who provide clients with analysis and opinions






44. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






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






49. 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.






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