Financial education is paramount to sound money management. Knowing the basics and staying in tune with the latest concepts can help us make informed decisions that fulfil our needs. 

While many of us have heard of (and use) "online banking", "responsible lending", "credit and debit cards", "second-hand marketplaces" and other financial terms, we’re often left asking what they are, what their benefits are and how to get the most out of them. 

Take our financial knowledge test below to learn about (or remind yourself of) the most common and useful concepts. It has ten multiple-choice questions with only one correct answer.  

Financial knowledge test

1. Online banking is:

a) a place where banks’ employees serve customers during opening hours.

b) an app on which customers can manage their products and services anytime, anywhere.

c) the technology that connects mobiles, tablets and computers to the Internet.

d) a new cryptocurrency people use to pay for their shopping, send money and invest in the stock market. 

2. Which of these is not an example of the collaborative economy?

a) Selling a guitar on a second-hand marketplace app.

b) Renting a holiday apartment on a platform that connects tourists with property owners.

c) Buying the latest mobile phone at a shop.

d) Sharing a car with people who are going to the same place to cut down on costs.

3. What is a stock market index?

a) A securities market indicator that shows companies’ performance.

b) The interest you have to pay on shares you've bought.

c) An academic certificate held by stockbrokers.

d) A list of the companies that trade on the same market, like the IBEX 35 and Dow Jones.

4. Sustainable finance means investing based on social and environmental criteria that promotes responsible development in society. It’s also known as ESG, which stands for:

a) E=Environmental, S=Social, G=Governance

b) E=Entertaining, S=Strong, G=Gradual

c) E=Environment, S=Society, G=Government

d) E=Experience, S=Simple, G=Greatness

5. Digitalization is enabling banks to come up with new customer service channels that help customers manage their money simply and easily anytime, anywhere. Which of these channels is online?

a) Social networks.

b) Email.

c) Virtual assistants.

d) All of the above. 

6. Saving is a key component of personal finance that safeguards against unforeseen expenses and promotes good financial health. However, it’s not easy because of:

a) poor financial planning.

b) inflation (a rise in the price of goods and services).

c) unforeseen and “ant” expenses.

d) All of the above. 

7. We must check the NIR and APR when applying for a loan. What do they stand for?

a) National Insurance Rate and Anticipated Protracted Rate.

b) Nominal Interest Rate and Annual Percentage Rate.

c) Negative Internal Rate and Accumulated Provision Rate. 

d) Net Increase Rate and Active Partial Rate.

8. Investment funds pool together people’s wealth to generate a return. Their features include:

a) access to markets that investors would usually have trouble entering alone. 

b) the chance to diversify investments.  

c) agents who scour the markets to find the best opportunities. 

d) All of the above.

9. Phishing is a form of email fraud where hackers steal personal data by posing as trusted people, companies or websites. To avoid falling foul, you should:

a) think before responding and clicking on or downloading attachments if you don’t know the sender.

b) ignore warning signs like poorly-written addresses, untrusted domain names and spelling mistakes. 

c) respond to every message that asks you for personal data because you could win a prize.

d) not report a suspicious email to the person or company the sender is posing as. 

10. In "responsible lending":

a) the bank is responsible for making sure the borrower spends the entire loan without regard for their ability to pay it back or over-indebtedness. 

b) the applicant signs an agreement to spend the loan responsibly or, otherwise, pay a penalty.

c) the bank is responsible for avoiding an applicant's over-indebtedness by assessing their ability to repay ethically and impartially, which protects the customer’s, bank’s and society’s financial health. 

d) if the applicant can't repay the loan by the agreed due date, they are backed by a responsible person who will pay it back instead.