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






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






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






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






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






6. Merrill Lynch & Fidelity Investments & American Express






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






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






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






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






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






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






13. The chance that inflation will rise faster than the rate of return on an investment






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






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






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






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






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






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






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






21. Business Weekly & Forbes & Money






22. 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.






23. Brokers who provided little or no information to clients






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






25. 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.






26. Debt obligations of state or local governments






27. A formal contract to repay borrowed money with interest at fixed intervals






28. Brokers who provided little or no information to clients






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






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






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






32. The amount a corporation borrowed in a bond situation






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






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






35. The value of What is given up when you choose one option over another.






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






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






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






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






40. A form of bankruptcy that allows you to repay many of your debts over a period of time - usually no more than five years.






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






42. Associated with owning stock of similar groups of businesses






43. The profit from an investment.






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






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






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






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






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






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






50. Merrill Lynch & Fidelity Investments & American Express