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 date on which the borrowed money must be repaid






2. Another term for budget






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






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






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






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






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






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






9. Associated with owning stock of only one company






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






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






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






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






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






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






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






17. A form of bankruptcy that allows you to erase most of your debt.






18. Debt obligations of state or local governments






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






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






21. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this






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






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






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






25. The value of What is given up when you choose one option over another.






26. Conservative investing; used when you have 'excess' savings






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






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






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






30. The entire amount of money you owe to lenders






31. Summary of a corporation's financial condition






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






33. A government sector that requires all public corporations to make annual reports available to their stockholders






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






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






36. Expenses that are not fixed.






37. A form of bankruptcy that allows you to erase most of your debt.






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






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






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






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






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






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






44. Actions that the government might take that would reduce the value of an investment






45. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this






46. US treasury security that matures in 30 years






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






48. Associated with owning stock of only one company






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






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