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. A general and progressive increase in prices






2. Bold and high-risk investments






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






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






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






6. Fee on credit card for making charges above your credit limit.






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






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






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






10. Standard and Poor's and Moody's






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






12. Another term for budget






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






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






15. A clause included in many credit card company agreements that allows a credit card company to increase your interest rate if you make just one late payment.






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






17. Investment choices that will be held for long periods






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






19. 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.






20. Brokers who provided little or no information to clients






21. A clause included in many credit card company agreements that allows a credit card company to increase your interest rate if you make just one late payment.






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






23. Brokers who provided little or no information to clients






24. Associated with owning stock of similar groups of businesses






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






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






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






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






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






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






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






32. The credit union term for a savings account.






33. The entire amount of money you owe to lenders






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






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






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






37. The profit from an investment.






38. Investors who take to take chances






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






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. US treasury security that matures in 30 years






42. The place where stocks are bought and sold.






43. Newspapers list of securities






44. 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.






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






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






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






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






49. Another term for budget






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