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






2. A chosen pursuit - profession - or occupation






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






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






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






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






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






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






9. 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.






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






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






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






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






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






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






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






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






18. The credit union term for a savings account.






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






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






21. Investors who take to take chances






22. The credit union term for a savings account.






23. 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.






24. Investment choices that will be held for long periods






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






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






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






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






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






30. Associated with owning stock of similar groups of businesses






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






32. 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.






33. Brokers who provided little or no information to clients






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






35. The place where stocks are bought and sold.






36. Brokers who provide clients with analysis and opinions






37. Companies that provide extensive financial data to clients






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






39. Associated with owning stock of similar groups of businesses






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






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






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






43. Companies that provide extensive financial data to clients






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






45. 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.






46. US treasury security that matures from a few days to one year






47. The profit from an investment.






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






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






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