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






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






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






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






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






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






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






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






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






10. The place where stocks are bought and sold.






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






12. The total amount of what it costs you to use credit in a given year. It is expressed as a percentage of the amount borrowed.






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






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






15. The place where stocks are bought and sold.






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 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.






18. Brokers who provide clients with analysis and opinions






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






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 profit from an investment.






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






24. A term that describes investments on which earnings are not taxed until retirement






25. Investment choices that will be held for long periods






26. Wall Street Journal and Barron's






27. Investors who take to take chances






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






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






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






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






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






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






34. The entire amount of money you owe to lenders






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






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






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






38. Brokers who provided little or no information to clients






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






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






41. Expenses that are not fixed.






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






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






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






45. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'






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






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






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






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






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