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. Business Weekly & Forbes & Money






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






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






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






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






6. The credit union term for a savings account.






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






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






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






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






11. Bold and high-risk investments






12. The place where stocks are bought and sold.






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






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






15. The profit from an investment.






16. Debt obligations of state or local governments






17. The portion of the profits paid to the shareholders of a company.






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






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






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






21. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.






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






23. US treasury security that matures in 30 years






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






25. Investors who take to take chances






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






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






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






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






30. Charles Schwab & TD Ameritrade & E*TRADE






31. The entire amount of money you owe to lenders






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






33. Brokers who provided little or no information to clients






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






35. Bold and high-risk investments






36. The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.






37. Debt obligations of corporations






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






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






40. The portion of the profits paid to the shareholders of a company.






41. Debt obligations of corporations






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






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






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






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






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






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






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






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






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