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






2. Investment choices that will be held for long periods






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






4. Brokers who provide clients with analysis and opinions






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






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






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






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






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






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






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






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






13. The unique passcode number you use to get access to your savings and/or checking account






14. The chance that inflation will rise faster than the rate of return on an investment






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






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






17. US treasury security that matures in 30 years






18. A certificate documenting the shareholder's ownership in the corporation






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






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






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






22. The unique passcode number you use to get access to your savings and/or checking account






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






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






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






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






27. Bold and high-risk investments






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






29. Expenses that are not fixed.






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






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






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






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






34. Investors who are afraid to make investments






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






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






37. Another term for budget






38. The credit union term for a checking account.






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






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






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






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






43. Investment choices that will be held for long periods






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






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






46. Investors who take to take chances






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






48. 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.






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






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