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






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. Smaller decisions that can result from a major decision.






4. 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.






5. Contacts to buy and sell commodities or stocks for a specific price on a specific date






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






7. The credit union term for a checking account.






8. Investment choices that will be held for long periods






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






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






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






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






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






14. Merrill Lynch & Fidelity Investments & American Express






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






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






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






18. The credit union term for a savings account.






19. A chosen pursuit - profession - or occupation






20. The amount a corporation borrowed in a bond situation






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






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






23. Fee on credit card for making charges above your credit limit.






24. Expenses that aren't paid every month and can be either fixed or variable.






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






26. A general and progressive increase in prices






27. A certificate documenting the shareholder's ownership in the corporation






28. A formal contract to repay borrowed money with interest at fixed intervals






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






30. The entire amount of money you owe to lenders






31. 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.






32. Contacts to buy and sell commodities or stocks for a specific price on a specific date






33. Merrill Lynch & Fidelity Investments & American Express






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






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






36. Brokers who provide clients with analysis and opinions






37. 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.






38. Another term for budget






39. Associated with owning stock of similar groups of businesses






40. 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.






41. 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.






42. Business Weekly & Forbes & Money






43. Charles Schwab & TD Ameritrade & E*TRADE






44. The amount a corporation pays at a fixed amount when repaying a bond






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






48. Summary of a corporation's financial condition






49. Wall Street Journal and Barron's






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