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






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






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






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






5. A unit of ownership in a corporation






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






7. A chosen pursuit - profession - or occupation






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






9. Expenses that are not fixed.






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






11. Bold and high-risk investments






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






13. Wall Street Journal and Barron's






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






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






16. 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.






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






18. The credit union term for a savings account.






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






20. The place where stocks are bought and sold.






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






22. Coins & art & memorabilia or other items that are popular from time to time






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. Collection of investments






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






26. Earning interest on interest.






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






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






29. Standard and Poor's and Moody's






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






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






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






33. Investors who take to take chances






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






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






36. Debt obligations of corporations






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






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






39. The entire amount of money you owe to lenders






40. Debt obligations of state or local governments






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






42. Contacts to buy and sell commodities or stocks for a specific price on a specific date






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






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






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






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






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






48. Regular and planned investments






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






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