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






3. Associated with owning stock of similar groups of businesses






4. 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.






5. The credit union term for a savings account.






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






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






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






9. Another term for budget






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






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






12. Investment choices that will be held for long periods






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






14. Debt obligations of corporations






15. Newspapers list of securities






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






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. Bonds designed for investors wanting to protect again inflation losses






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






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






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






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






23. A fee charged to a borrower (especially for a mortgage loan) to cover the costs of initiating the loan.






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






25. Investors who are afraid to make investments






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






27. Brokers who provided little or no information to clients






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






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






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






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






32. Debt obligations of state or local governments






33. The profit from an investment.






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






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






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






37. The entire amount of money you owe to lenders






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






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






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






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






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






43. The entire amount of money you owe to lenders






44. Collection of investments






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






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






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






48. Associated with owning stock of similar groups of businesses






49. 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.






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