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. Brokers who provided little or no information to clients






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






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






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






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






6. 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.






7. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.






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






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






10. A unit of ownership in a corporation






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






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






13. 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.'






14. A chosen pursuit - profession - or occupation






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






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






17. Summary of a corporation's financial condition






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






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






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






21. Debt obligations of state or local governments






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






23. Associated with owning stock of only one company






24. Debt obligations of corporations






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






26. 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.






27. The credit union term for a checking account.






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






29. 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.






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






31. The place where stocks are bought and sold.






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






33. A general and progressive increase in prices






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






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






36. Regular and planned investments






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






38. The use of long-term savings to earn a financial return






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






40. Associated with owning stock of only one company






41. 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.






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






43. The entire amount of money you owe to lenders






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






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






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






47. Business Weekly & Forbes & Money






48. Earning interest on interest.






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






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