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






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






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






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






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






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






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






8. Another term for budget






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






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






11. Investors who are afraid to make investments






12. 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.






13. Bold and high-risk investments






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






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






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






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






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






19. A general and progressive increase in prices






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






21. 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.






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






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






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






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






26. 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.'






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






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






29. The place where stocks are bought and sold.






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






31. The entire amount of money you owe to lenders






32. The profit from an investment.






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






34. Newspapers list of securities






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






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






37. Smaller decisions that can result from a major decision.






38. 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.






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






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






41. A certificate documenting the shareholder's ownership in the corporation






42. Bold and high-risk investments






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






44. The credit union term for a checking account.






45. Associated with owning stock of similar groups of businesses






46. Property consisting of houses and land






47. A formal contract to repay borrowed money with interest at fixed intervals






48. US treasury security that matures in 30 years






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






50. Regular and planned investments