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. Merrill Lynch & Fidelity Investments & American Express






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






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






4. Another term for budget






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






6. Debt obligations of state or local governments






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






8. Earning interest on interest.






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






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






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






12. Regular and planned investments






13. Associated with owning stock of only one company






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






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






16. A unit of ownership in a corporation






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






18. A chosen pursuit - profession - or occupation






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






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






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






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






23. 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.






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






25. The chance that an investment's value will decrease






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






27. An investment security that is actually a diversified portfolio of equities - bonds or other securities. Investors purchase shares and can sell them at any time.






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






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






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






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






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






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






34. Brokers who provide clients with analysis and opinions






35. Charles Schwab & TD Ameritrade & E*TRADE






36. Coins & art & memorabilia or other items that are popular from time to time






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






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






39. The profit from an investment.






40. The credit union term for a savings account.






41. 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.






42. A term that describes investments on which earnings are not taxed until retirement






43. Standard and Poor's and Moody's






44. Expenses that are not fixed.






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






46. The chance that an investment's value will decrease






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






48. Coins & art & memorabilia or other items that are popular from time to time






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






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