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 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.






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






3. Standard and Poor's and Moody's






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






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






6. Brokers who provide clients with analysis and opinions






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






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






9. Associated with owning stock of similar groups of businesses






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






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






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






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






14. Contacts to buy and sell commodities or stocks for a specific price on a specific date






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






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






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






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






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






20. US treasury security that matures in 30 years






21. A unit of ownership in a corporation






22. 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.






23. The credit union term for a savings account.






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






25. The profit from an investment.






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






27. Debt obligations of state or local governments






28. The entire amount of money you owe to lenders






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






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






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






32. Companies that provide extensive financial data to clients






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






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






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






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






37. Bonds designed for investors wanting to protect again inflation losses






38. Earning interest on interest.






39. A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest.






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






41. An amount of money that is loaned on trust with the expectation that it will be repaid at a later date.






42. 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.






43. Investment choices that will be held for long periods






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






45. The credit union term for a savings account.






46. 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.






47. A general and progressive increase in prices






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






49. Newspapers list of securities






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