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






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






3. Amount of money that is set aside for future purchases






4. The credit union term for a savings account.






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






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






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






8. Brokers who provided little or no information to clients






9. Investors who are afraid to make investments






10. A unit of ownership in a corporation






11. 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.






12. The entire amount of money you owe to lenders






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






14. 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.






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






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






17. Expenses that are not fixed.






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






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






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






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






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






23. Wall Street Journal and Barron's






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






25. Investors who take to take chances






26. Investors who are afraid to make investments






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






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






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






30. Amount of money that is set aside for future purchases






31. 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.






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






33. The profit from an investment.






34. A chosen pursuit - profession - or occupation






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






36. Regular and planned investments






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






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






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






40. A unit of ownership in a corporation






41. Brokers who provide clients with analysis and opinions






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






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






44. The place where stocks are bought and sold.






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






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






47. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






48. Newspapers list of securities






49. 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.'






50. Summary of a corporation's financial condition