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






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






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






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






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






6. 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.






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






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






9. Losses in an investment as a result of the business cycle






10. Debt obligations of state or local governments






11. Associated with owning stock of similar groups of businesses






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






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






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






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






16. A unit of ownership in a corporation






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






18. Collection of investments






19. Charles Schwab & TD Ameritrade & E*TRADE






20. Debt obligations of state or local governments






21. Management of investment alternatives to maximize the growth of your portfolio






22. Associated with owning stock of similar groups of businesses






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






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






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






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






27. The credit union term for a checking account.






28. Companies that provide extensive financial data to clients






29. The process of dealing with the chance of a potential personal or financial loss.






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






31. Debt obligations of corporations






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






33. Summary of a corporation's financial condition






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






35. 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.'






36. Investment choices that will be held for long periods






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






38. A spending plan for managing money during a given period of time.






39. Smaller decisions that can result from a major decision.






40. Merrill Lynch & Fidelity Investments & American Express






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






42. Collection of investments






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






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






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






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






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






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






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






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