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






2. The profit from an investment.






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






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






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






6. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.






7. The credit union term for a savings account.






8. 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.






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






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






11. 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.






12. Collection of investments






13. Expenses that are not fixed.






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






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






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






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






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






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






20. Business Weekly & Forbes & Money






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






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






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






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






25. Bold and high-risk investments






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






27. Companies that provide extensive financial data to clients






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






29. A technique to gain personal information for the purpose of identity theft - usually by means of fraudulent e-mail or pop-up messages.






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






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






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






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






34. Brokers who provide clients with analysis and opinions






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






36. Fee on credit card for making charges above your credit limit.






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






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






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






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






41. 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.






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






43. A chosen pursuit - profession - or occupation






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






45. A unit of ownership in a corporation






46. Investing with a series of regular payments; usually associated with life insurance companies






47. The probability that injury - damage - or loss will occur.






48. Property consisting of houses and land






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






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