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






2. Summary of a corporation's financial condition






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






4. US treasury security that matures in 30 years






5. 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.






6. 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.






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






8. The entire amount of money you owe to lenders






9. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






14. Collection of investments






15. The portion of the profits paid to the shareholders of a company.






16. The place where stocks are bought and sold.






17. Investors who are afraid to make investments






18. The credit union term for a savings account.






19. Brokers who provide clients with analysis and opinions






20. A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly - disabled Americans - and orphaned minors.






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






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






23. The practice of investing a fixed amount into the same investment at regular intervals - regardless of what the stock market is doing.






24. The portion of the profits paid to the shareholders of a company.






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






26. Brokers who provided little or no information to clients






27. Debt obligations of state or local governments






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






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






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






31. Regular and planned investments






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






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






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






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






36. A unit of ownership in a corporation






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






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






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






40. The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity.






41. Wall Street Journal and Barron's






42. The credit union term for a savings account.






43. Earning interest on interest.






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






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






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






47. Property consisting of houses and land






48. 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.






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






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