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. Smaller decisions that can result from a major decision.






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






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






4. Business Weekly & Forbes & Money






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






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






7. Investment choices that will be held for long periods






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






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






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






11. Debt obligations of state or local governments






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






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






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






15. Collection of investments






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






17. 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.






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






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






20. A unit of ownership in a corporation






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






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






23. Debt obligations of corporations






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






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






26. A card that is used to deduct a purchase amount directly from your checking account instead of drawing on a line of credit; also called 'check card.'






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






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






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






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






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






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






33. 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.






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






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






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






37. A chosen pursuit - profession - or occupation






38. The date on which the borrowed money must be repaid






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






40. 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.






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






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






43. Associated with owning stock of similar groups of businesses






44. US treasury security that matures in 30 years






45. The profit from an investment.






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






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






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






49. 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.






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