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. Debt obligations of state or local governments






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






3. The place where stocks are bought and sold.






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






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






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






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






8. A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest.






9. Wall Street Journal and Barron's






10. Earning interest on interest.






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






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






13. Business Weekly & Forbes & Money






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






15. Collection of investments






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






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






18. Debt obligations of state or local governments






19. The amount a corporation borrowed in a bond situation






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






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






22. Investment choices that will be held for long periods






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






24. Business Weekly & Forbes & Money






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. Smaller decisions that can result from a major decision.






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. Wall Street Journal and Barron's






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






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






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






32. Property consisting of houses and land






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






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






35. A unit of ownership in a corporation






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






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






38. The use of long-term savings to earn a financial return






39. Summary of a corporation's financial condition






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






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






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






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






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






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






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






47. A general and progressive increase in prices






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






49. Regular and planned investments






50. 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.