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






2. Brokers who provided little or no information to clients






3. Regular and planned investments






4. Another term for budget






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






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






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






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






9. 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.






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






11. A unit of ownership in a corporation






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






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






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






15. Bold and high-risk investments






16. The profit from an investment.






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






18. The credit union term for a savings account.






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






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






21. Associated with owning stock of only one company






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






23. Newspapers list of securities






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






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






26. Investors who are afraid to make investments






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






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






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






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






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






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






33. A chosen pursuit - profession - or occupation






34. The entire amount of money you owe to lenders






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






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






37. 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.






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






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






40. An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time.






41. The credit union term for a checking account.






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






43. A spending plan for managing money during a given period of time.






44. Wall Street Journal and Barron's






45. Another term for budget






46. Associated with owning stock of similar groups of businesses






47. Bold and high-risk investments






48. The belief - qualities - or standards that you consider important or desirable.






49. 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.






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