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. Bold and high-risk investments






2. Companies that provide extensive financial data to clients






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






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






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






6. The credit union term for a savings account.






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






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






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






10. Brokers who provide clients with analysis and opinions






11. US treasury security that matures from a few days to one year






12. Brokers who provide clients with analysis and opinions






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






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






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






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






17. Low-priced stocks of small companies that have no track record






18. An amount that credit card companies can charge for the use of a credit card.






19. Earning interest on interest.






20. The difference between a lower selling price and a higher purchase price resulting in a financial loss for the seller






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






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






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






24. 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.






25. 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.






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






27. Investors who are afraid to make investments






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






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






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






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






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






33. 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.'






34. Debt obligations of state or local governments






35. A unit of ownership in a corporation






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






37. Regular and planned investments






38. Investment choices that will be held for long periods






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






40. Pooling of money from many investors to buy a large & diverse selection of securities






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






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






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






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






45. US treasury security that matures in 30 years






46. Associated with owning stock of similar groups of businesses






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






48. A chosen pursuit - profession - or occupation






49. 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.






50. Newspapers list of securities