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






2. Associated with owning stock of only one company






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






4. Another term for budget






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






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






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






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






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






10. Money used for short-term needs like emergencies; advisers recommend three to six months' net pay for set aside for this






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






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






13. Brokers who provided little or no information to clients






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






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






16. Merrill Lynch & Fidelity Investments & American Express






17. A form of bankruptcy that allows you to erase most of your debt.






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






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






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






21. Investors who are afraid to make investments






22. 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.






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






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






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






26. Wall Street Journal and Barron's






27. Collection of investments






28. The amount a corporation borrowed in a bond situation






29. A general and progressive increase in prices






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






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






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






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






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






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






36. 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.






37. The credit union term for a checking account.






38. Debt obligations of corporations






39. 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.






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






41. Collection of investments






42. Expenses that are not fixed.






43. Debt obligations of state or local governments






44. 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.






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






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






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






48. 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.






49. 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.






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