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






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






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






4. People trained to give investment advise based on your goals & age & lifestyle & etc






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






6. 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.






7. The profit from an investment.






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






9. Investment choices that will be held for long periods






10. The amount a corporation borrowed in a bond situation






11. A summary of a person's borrowing and repayment history.






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






13. Property consisting of houses and land






14. Brokers who provide clients with analysis and opinions






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






16. Bold and high-risk investments






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






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






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






20. Expenses that are not fixed.






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






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






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






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






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






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






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






29. 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.






30. Business Weekly & Forbes & Money






31. Pooling of money from many investors to buy a large & diverse selection of securities






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






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






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






35. US treasury security that matures in 30 years






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






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






38. Standard and Poor's and Moody's






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






40. A chosen pursuit - profession - or occupation






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






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






43. The credit union term for a checking account.






44. Investment choices that will be held for long periods






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






46. Pooling of money from many investors to buy a large & diverse selection of securities






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






48. Wall Street Journal and Barron's






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






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