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 probability that injury - damage - or loss will occur.






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






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






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






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






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






7. The profit from an investment.






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






9. Bold and high-risk investments






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






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






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






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






14. Standard and Poor's and Moody's






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






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






17. 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.






18. Collection of investments






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






20. Investment choices that will be held for long periods






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






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






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






24. Smaller decisions that can result from a major decision.






25. 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.






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






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






28. Expenses that are not fixed.






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






30. Debt obligations of corporations






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






32. The credit union term for a savings account.






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






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






35. Regular and planned investments






36. Merrill Lynch & Fidelity Investments & American Express






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






38. Property consisting of houses and land






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






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






41. Maximum amount of credit a lender will extend to a customer.






42. Summary of a corporation's financial condition






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






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






45. A unit of ownership in a corporation






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






47. Another term for budget






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






49. Debt obligations of state or local governments






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