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






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






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






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






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






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






7. Companies that provide extensive financial data to clients






8. 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.






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






10. Associated with owning stock of similar groups of businesses






11. Debt obligations of state or local governments






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






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






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






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






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






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






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






19. Collection of investments






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






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






22. 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.






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






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






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






26. Charles Schwab & TD Ameritrade & E*TRADE






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






28. The profit from an investment.






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






30. Associated with owning stock of similar groups of businesses






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






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






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






34. The amount a corporation borrowed in a bond situation






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






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






37. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.






38. The credit union term for a savings account.






39. Another term for budget






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






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






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






43. 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.






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






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






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






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






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






49. A chosen pursuit - profession - or occupation






50. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.