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






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






4. Brokers who provide clients with analysis and opinions






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






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






7. 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.






8. The portion of the profits paid to the shareholders of a company.






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






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






11. Brokers who provide clients with analysis and opinions






12. 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.






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






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






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






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






17. US treasury security that matures in 30 years






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






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






20. The entire amount of money you owe to lenders






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






22. Another term for budget






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






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






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






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






27. 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.






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






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






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






31. The profit from an investment.






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






33. A legal process to get out of debt when you can no longer make all your required payments.






34. 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.






35. Associated with owning stock of only one company






36. A for-profit company that is owned by its stockholders and provides savings and checking accounts and other financial services to its customers.






37. Regular and planned investments






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






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






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






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






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






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






44. The place where stocks are bought and sold.






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






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






47. 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.






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






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






50. Collection of investments