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. Movement of money you receive and the money you spend






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






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






4. Expenses that are not fixed.






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






6. 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.






7. 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.






8. Investors who take to take chances






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






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






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






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






13. A chosen pursuit - profession - or occupation






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






15. Investors who are afraid to make investments






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






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






18. 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.






19. 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.






20. Newspapers list of securities






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






22. Regular and planned investments






23. Brokers who provided little or no information to clients






24. The entire amount of money you owe to lenders






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






26. A chosen pursuit - profession - or occupation






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






28. Brokers who provide clients with analysis and opinions






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






30. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






31. Regular and planned investments






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






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






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






35. Wall Street Journal and Barron's






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






37. A general and progressive increase in prices






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






39. The credit union term for a checking account.






40. Investment choices that will be re-evaluated within a year or less






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






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






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






44. Standard and Poor's and Moody's






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






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






47. 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.






48. Earning interest on interest.






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






50. Property consisting of houses and land