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






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






3. US treasury security that matures in 30 years






4. Investment choices that will be held for long periods






5. The amount a corporation pays at a fixed amount when repaying a bond






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






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






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






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






10. A chosen pursuit - profession - or occupation






11. US treasury security that matures in 30 years






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






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






14. Another term for budget






15. Expenses that are not fixed.






16. Property consisting of houses and land






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






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






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






20. Losses in an investment as a result of the business cycle






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






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






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






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






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






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






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






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






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






30. A chosen pursuit - profession - or occupation






31. The credit union term for a savings account.






32. Investment choices that will be held for long periods






33. 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.






34. 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.






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






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






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






38. 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.






39. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






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






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






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






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






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






45. Debt obligations of state or local governments






46. Investors who are afraid to make investments






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






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






49. Regular and planned investments






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