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






2. 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.






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






4. The profit from an investment.






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






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






7. Business Weekly & Forbes & Money






8. The place where stocks are bought and sold.






9. Brokers who provided little or no information to clients






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






11. Wall Street Journal and Barron's






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






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






14. Summary of a corporation's financial condition






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






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






17. Earning interest on interest.






18. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this






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






20. Management of investment alternatives to maximize the growth of your portfolio






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






22. US treasury security that matures from a few days to one year






23. The profit from an investment.






24. 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.






25. Investment choices that will be held for long periods






26. Expenses that are not fixed.






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






28. Investors who are afraid to make investments






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






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






31. 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.






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






33. Standard and Poor's and Moody's






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






35. The credit union term for a savings account.






36. Charles Schwab & TD Ameritrade & E*TRADE






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






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






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






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






41. The entire amount of money you owe to lenders






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






43. 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.






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






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






46. Bold and high-risk investments






47. Associated with owning stock of only one company






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






49. Regular and planned investments






50. Merrill Lynch & Fidelity Investments & American Express