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






2. The credit union term for a checking account.






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






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






5. 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.






6. Wall Street Journal and Barron's






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






8. US treasury security that matures in 30 years






9. Investment choices that will be held for long periods






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






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






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






13. Debt obligations of corporations






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






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






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






17. On a credit card - the length of time you have before you start accumulating interest on an unpaid balance.






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






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






20. Standard and Poor's and Moody's






21. The place where stocks are bought and sold.






22. Bold and high-risk investments






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






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






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






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






28. Another term for budget






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






30. The entire amount of money you owe to lenders






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






32. Business Weekly & Forbes & Money






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






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






35. The probability that injury - damage - or loss will occur.






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






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






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






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






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






41. A chosen pursuit - profession - or occupation






42. Summary of a corporation's financial condition






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






44. 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.






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






46. A general and progressive increase in prices






47. Earning interest on interest.






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






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






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