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Financial Literacy Vocab

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 plan for managing money & dividing up expected income and expenses among spending and saving options based on personal goals during a given time period.






2. A measure of creditworthiness based on an analysis of the consumer's financial history & often computed as a numerical score & using the FICO or other scoring systems to analyze the consumer's credit.






3. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.






4. A long-term loan to buy real estate including land and the structures on it.






5. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)






6. A retirement plan that allows employees in private companies to make contributions of pre-tax dollars to a company pool that is then invested in stocks & bonds & or money markets.






7. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.






8. A plastic card used to deduct a purchase amount directly from your checking account.






9. A written contract specifying the terms for the use of an asset and the legal responsibilities of both parties to the agreement & such as a property owner and tenant.






10. Someone who rummages through your trash looking for bills or other paper with your personal information on it.






11. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.






12. Wages or salary before deductions for taxes and other purposes.






13. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.






14. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.






15. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.






16. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends






17. A non-cash contribution to a charitable organization which can be given a cash value.






18. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.






19. A tax that takes a larger percentage of income from people in higher-income groups than from people in lower-income ones; (Example - U.S. federal income tax)






20. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).






21. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)






22. Payment for the use of someone else's money






23. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)






24. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.






25. The percentage of the costs of medical services paid by the patient.






26. A set of principles or beliefs that govern an individual's actions.






27. A plastic card used to deduct a purchase amount directly from your checking account.






28. An agreement to provide goods & services & or money in exchange for future payments with interest by a specific date or according to a specific schedule.






29. Using a person's name or personal information without the person's permission to steal money or get other benefit.






30. A plan for managing money & dividing up expected income and expenses among spending and saving options based on personal goals during a given time period.






31. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.






32. A measure of the uncertainty of an investment's rate of return; possible losses.






33. A purposeful course of action or purpose in life that generally provides income






34. A federal system of old-age & survivors' & disability & and hospital care (Medicare) insurance which requires employers to withhold wages from employees' paychecks and deposit that money in designated accounts.






35. A long-term loan to buy real estate including land and the structures on it.






36. An establishment that collects and distributes credit history info. of individuals & business.






37. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.






38. The length of time & in years that it takes an amount of money saved to double when it receives compound interest. This length of time can be found by dividing the interest rate into 72.






39. A company that makes loans for the purchase of a house or other real estate.






40. A non-cash contribution to a charitable organization which can be given a cash value.






41. The original amount of money deposited or invested.






42. The chance or likelihood that something will happen.






43. The act of giving to charitable organizations or to those in need.






44. Taking risks with personal finances or personal assets






45. An establishment that collects and distributes credit history info. of individuals & business.






46. Payment for the use of someone else's money






47. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.






48. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.






49. The original amount of money deposited or invested.






50. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.