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 setting aside of money for future use or other investments






2. The credit union term for a savings account.






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






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






5. Debt obligations of corporations






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






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






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






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






10. A chosen pursuit - profession - or occupation






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






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






13. Debt obligations of state or local governments






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






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






16. The unique passcode number you use to get access to your savings and/or checking account






17. Collection of investments






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






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






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






21. 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.






22. Management of investment alternatives to maximize the growth of your portfolio






23. Investors who are afraid to make investments






24. A chosen pursuit - profession - or occupation






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






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






27. 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.






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






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






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






31. Standard and Poor's and Moody's






32. The place where stocks are bought and sold.






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






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






35. Companies that provide extensive financial data to clients






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






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






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






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






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






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






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






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






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






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






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






47. Bold and high-risk investments






48. Another term for budget






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






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