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






2. The credit union term for a savings account.






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






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






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






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






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






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






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






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






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






13. 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.






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






15. 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.






16. Wall Street Journal and Barron's






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






18. Companies that provide extensive financial data to clients






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






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






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






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






23. The value of What is given up when you choose one option over another.






24. Standard and Poor's and Moody's






25. Regular and planned investments






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






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






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






29. Brokers who provided little or no information to clients






30. Business Weekly & Forbes & Money






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






32. Summary of a corporation's financial condition






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






34. The place where stocks are bought and sold.






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






36. Charles Schwab & TD Ameritrade & E*TRADE






37. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.






38. US treasury security that matures in 30 years






39. 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.






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






41. 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.






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






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






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






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






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






47. The date on which the borrowed money must be repaid






48. Associated with owning stock of only one company






49. The profit from an investment.






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