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






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






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






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






5. The place where stocks are bought and sold.






6. Brokers who provided little or no information to clients






7. The chance that an investment's value will decrease






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






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






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






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






12. Business Weekly & Forbes & Money






13. A detailed record of your personal credit and financial transactions.






14. A detailed record of your personal credit and financial transactions.






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






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






17. A unit of ownership in a corporation






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






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






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






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






22. The credit union term for a checking account.






23. Companies that provide extensive financial data to clients






24. Newspapers list of securities






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






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






27. Associated with owning stock of similar groups of businesses






28. 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.






29. Summary of a corporation's financial condition






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






31. Property consisting of houses and land






32. 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.






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






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






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






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






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






38. Expenses that are not fixed.






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






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






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






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






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






44. The credit union term for a savings account.






45. The credit union term for a savings account.






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






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






48. 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.






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






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