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






2. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.






3. The profit from an investment.






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






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






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






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






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






9. Collection of investments






10. A technique used for estimating the number of years required to double your money at a given rate






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






12. Investors who take to take chances






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






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






15. Associated with owning stock of only one company






16. Charles Schwab & TD Ameritrade & E*TRADE






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






18. Investors who are afraid to make investments






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






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






21. Expenses that are not fixed.






22. The credit union term for a checking account.






23. The credit union term for a savings account.






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






25. The credit union term for a checking account.






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






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






28. A general and progressive increase in prices






29. Property consisting of houses and land






30. Collection of investments






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






32. Associated with owning stock of similar groups of businesses






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






34. The entire amount of money you owe to lenders






35. Debt obligations of state or local governments






36. A chosen pursuit - profession - or occupation






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






38. Earning interest on interest.






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






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






41. Another term for budget






42. 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.






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






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






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






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






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






48. Earning interest on interest.






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






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






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