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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. Associated with owning stock of only one company






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






3. Another term for budget






4. Wall Street Journal and Barron's






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






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






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






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






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






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






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






12. Investors who take to take chances






13. The entire amount of money you owe to lenders






14. Standard and Poor's and Moody's






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






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






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






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






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






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






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






22. 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.






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






24. Property consisting of houses and land






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






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






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






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






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






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






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






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






33. The credit union term for a checking account.






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






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






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






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






38. 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.






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






40. The credit union term for a checking account.






41. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






42. Another term for budget






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






44. Merrill Lynch & Fidelity Investments & American Express






45. Losses in an investment as a result of the business cycle






46. A clause included in many credit card company agreements that allows a credit card company to increase your interest rate if you make just one late payment.






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






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






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






50. Business Weekly & Forbes & Money







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Can you answer 50 questions in 15 minutes?


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