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. Associated with owning stock of similar groups of businesses






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






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






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






5. Expenses that are not fixed.






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






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






8. Bold and high-risk investments






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 certificate documenting the shareholder's ownership in the corporation






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






12. 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.






13. Associated with owning stock of similar groups of businesses






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






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






16. 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.'






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






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






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






20. The profit from an investment.






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






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






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






24. The place where stocks are bought and sold.






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






26. The credit union term for a checking account.






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






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






29. The willingness to give up something you want now in return for something better in the future.






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






31. Movement of money you receive and the money you spend






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






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






34. 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.'






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






36. A bank account against which the depositor can draw checks payable on demand.






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






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






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






40. Companies that provide extensive financial data to clients






41. The amount a corporation borrowed in a bond situation






42. 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.






43. A summary of a person's borrowing and repayment history.






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






45. Debt obligations of state or local governments






46. The credit union term for a savings account.






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






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






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






50. Investors who are afraid to make investments