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






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






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






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






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






6. 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.






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






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






9. 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.






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






11. 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.






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






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






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






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






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






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






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






19. Wall Street Journal and Barron's






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






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






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






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






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






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






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






27. Debt obligations of corporations






28. Investors who take to take chances






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






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






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






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






33. The profit from an investment.






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






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






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






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






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






39. Summary of a corporation's financial condition






40. Amount of money that is set aside for future purchases






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






42. A chosen pursuit - profession - or occupation






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






44. Associated with owning stock of similar groups of businesses






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






46. Summary of a corporation's financial condition






47. Associated with owning stock of only one company






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






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






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