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






2. Debt obligations of state or local governments






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






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






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






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






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






8. The entire amount of money you owe to lenders






9. Companies that provide extensive financial data to clients






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






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






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






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






14. Bold and high-risk investments






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






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






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






18. A general and progressive increase in prices






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






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






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






22. Investors who take to take chances






23. The profit from an investment.






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






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






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






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






28. 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.






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






30. Bold and high-risk investments






31. Property consisting of houses and land






32. US treasury security that matures in 30 years






33. Investors who are afraid to make investments






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






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






36. 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.






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






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






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






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






41. 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.






42. A summary of a person's borrowing and repayment history.






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






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






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






46. Collection of investments






47. Brokers who provide clients with analysis and opinions






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






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






50. Investors who are afraid to make investments