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






2. The profit from an investment.






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






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






5. Brokers who provided little or no information to clients






6. A term that describes investments on which earnings are not taxed until retirement






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






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






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






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






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






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






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






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






15. 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.






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






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






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






19. Bold and high-risk investments






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






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






22. Associated with owning stock of similar groups of businesses






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






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






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






26. US treasury security that matures in 30 years






27. Investors who take to take chances






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






29. Newspapers list of securities






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






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






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






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






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






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






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






37. 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.'






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






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






40. The place where stocks are bought and sold.






41. A government sector that requires all public corporations to make annual reports available to their stockholders






42. Expenses that are not fixed.






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






44. Companies that provide extensive financial data to clients






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






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






47. The value of What is given up when you choose one option over another.






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






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






50. 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.