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






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






3. 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.






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






5. A formal contract to repay borrowed money with interest at fixed intervals






6. US treasury security that matures in 30 years






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






8. Brokers who provided little or no information to clients






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






10. Bold and high-risk investments






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






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






13. Debt obligations of state or local governments






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






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






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






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






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






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






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






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






22. 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.






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






24. Brokers who provided little or no information to clients






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






26. Earning interest on interest.






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






28. Investors who take to take chances






29. 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.






30. 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.






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






32. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.






33. Investors who are afraid to make investments






34. 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.






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






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






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






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






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






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






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






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






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






44. Collection of investments






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






46. Investment choices that will be held for long periods






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






48. Business Weekly & Forbes & Money






49. 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.






50. The credit union term for a savings account.