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. Movement of money you receive and the money you spend






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






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






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






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






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






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






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






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






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






12. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.






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






14. Collection of investments






15. Another term for budget






16. 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.






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






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






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






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






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






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






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






24. 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.






25. The chance that an investment's value will decrease






26. Newspapers list of securities






27. 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.






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






29. Newspapers list of securities






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






31. Associated with owning stock of only one company






32. A general and progressive increase in prices






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






34. 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.






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






36. Investors who are afraid to make investments






37. Contacts to buy and sell commodities or stocks for a specific price on a specific date






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






39. Summary of a corporation's financial condition






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






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






42. Expenses that aren't paid every month and can be either fixed or variable.






43. People trained to give investment advise based on your goals & age & lifestyle & etc






44. Earning interest on interest.






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






46. The increase or decrease in the original purchase price of an investment over a period of time.






47. A bad side effect of free downloads that may be used to send you pop-up ads - redirect your computer to unwanted Web sites - monitor your Internet surfing - or record your keystrokes in an effort to steal your identity.






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






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






50. The chance that an investment's value will decrease