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 summary of a person's borrowing and repayment history.






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






3. Newspapers list of securities






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






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






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






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






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






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






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






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






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






13. The amount a corporation borrowed in a bond situation






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






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






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






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






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






19. Investors who take to take chances






20. Bold and high-risk investments






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






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






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






24. A goal to be achieved within the next three months.






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






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






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






28. Property consisting of houses and land






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






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






31. 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.






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






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






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






35. Investors who take to take chances






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






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






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






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






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






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






42. The place where stocks are bought and sold.






43. Investment choices that will be held for long periods






44. A goal to be achieved within the next three months.






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






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






47. 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.






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






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






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