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






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






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






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






5. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






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






7. 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.






8. Movement of money you receive and the money you spend






9. 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.






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






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






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






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






14. 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.






15. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






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






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






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






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






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






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






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






23. A general and progressive increase in prices






24. Collection of investments






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






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






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






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






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






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






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






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






33. The amount a corporation borrowed in a bond situation






34. A unit of ownership in a corporation






35. 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.






36. Regular and planned investments






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






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






40. Brokers who provide clients with analysis and opinions






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






42. Debt obligations of state or local governments






43. Summary of a corporation's financial condition






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






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






46. 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.






47. A government sector that requires all public corporations to make annual reports available to their stockholders






48. The credit union term for a savings account.






49. Standard and Poor's and Moody's






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