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. US treasury security that matures in 30 years






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






3. 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.






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






5. 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.'






6. Brokers who provided little or no information to clients






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






8. Investors who take to take chances






9. Uncontrollable and unpredictable events that cause an investment to lose value






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






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






12. US treasury security that matures in 30 years






13. 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.






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






15. Debt obligations of corporations






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






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






18. Companies that provide extensive financial data to clients






19. Standard and Poor's and Moody's






20. Bold and high-risk investments






21. A term that describes investments on which earnings are not taxed until retirement






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






23. The place where stocks are bought and sold.






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






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






26. 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.






27. The setting aside of money for future use or other investments






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






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






30. Another term for budget






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






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






33. The credit union term for a savings account.






34. Newspapers list of securities






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






36. Newspapers list of securities






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






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






39. A chosen pursuit - profession - or occupation






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






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






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






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






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






45. Brokers who provide clients with analysis and opinions






46. 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.






47. Business Weekly & Forbes & Money






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






49. A general and progressive increase in prices






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