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






2. 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.






3. A general and progressive increase in prices






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






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






6. Investors who are afraid to make investments






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






8. US treasury security that matures in 2 & 5 & or 10 years






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






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






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






12. Bold and high-risk investments






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






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






15. 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.






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






17. 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.






18. Debt obligations of state or local governments






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






20. The place where stocks are bought and sold.






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






22. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






27. A unit of ownership in a corporation






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






29. Newspapers list of securities






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






31. Another term for budget






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






33. The credit union term for a checking account.






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






35. Property consisting of houses and land






36. 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.'






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






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






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






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






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






42. Collection of investments






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






44. Expenses that are not fixed.






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






46. Wall Street Journal and Barron's






47. The entire amount of money you owe to lenders






48. Associated with owning stock of similar groups of businesses






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






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