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 chosen pursuit - profession - or occupation






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






3. The credit union term for a savings account.






4. Brokers who provide clients with analysis and opinions






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






6. 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.






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






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






9. A general and progressive increase in prices






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






11. 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.






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






13. Summary of a corporation's financial condition






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






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






16. A goal to be achieved within the next three months.






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






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






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






20. 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.






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






22. Companies that provide extensive financial data to clients






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






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






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






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






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






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






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






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






31. Bold and high-risk investments






32. The portion of the profits paid to the shareholders of a company.






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






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






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






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






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






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






39. Reducing investment risk by putting money in several different types of investments.






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






41. Associated with owning stock of similar groups of businesses






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






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






44. Investment choices that will be re-evaluated within a year or less






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






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






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






48. Debt obligations of state or local governments






49. Charles Schwab & TD Ameritrade & E*TRADE






50. Expenses that are not fixed.