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 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.






2. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.






3. The entire amount of money you owe to lenders






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






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






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






7. 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.






8. Property consisting of houses and land






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






10. Debt obligations of state or local governments






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






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






13. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller






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






15. Wall Street Journal and Barron's






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






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






18. Charles Schwab & TD Ameritrade & E*TRADE






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






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






21. Expenses that are not fixed.






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






23. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.






24. The profit from an investment.






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






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






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






28. Bold and high-risk investments






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






30. Charles Schwab & TD Ameritrade & E*TRADE






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






32. Associated with owning stock of only one company






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






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






35. 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.






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






37. The difference between a higher selling price and a lower purchase price - resulting in a financial gain for the seller






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






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






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






41. A chosen pursuit - profession - or occupation






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






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






44. The place where stocks are bought and sold.






45. The right & not the obligation & to buy or sell commodities or stocks for a specific price on a specific date






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






47. The entire amount of money you owe to lenders






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






49. Investment choices that will be held for long periods






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