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 setting aside of money for future use or other investments






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






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






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






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






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






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






8. A general and progressive increase in prices






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






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






11. Newspapers list of securities






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






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






14. Companies that provide extensive financial data to clients






15. Associated with owning stock of only one company






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






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






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






19. Debt obligations of state or local governments






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






21. 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.






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






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






24. 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.






25. The amount a corporation borrowed in a bond situation






26. Expenses that are not fixed.






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






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






29. The credit union term for a checking account.






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






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






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






33. A chosen pursuit - profession - or occupation






34. The entire amount of money you owe to lenders






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






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






37. Investors who take to take chances






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






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






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






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






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






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






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






45. Bold and high-risk investments






46. Debt obligations of corporations






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






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






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 entire amount of money you owe to lenders