Test your basic knowledge |

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






2. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.






3. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.






4. A legal organization providing services or activities without commercial or monetary gain.






5. A bank or credit union account that allows withdrawals by writing a check.






6. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.






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






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






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






10. 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.






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






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






13. 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.






14. The chance or likelihood that something will happen.






15. The chance or likelihood that something will happen.






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






17. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.






18. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).






19. 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.






20. 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.






21. Someone who knowingly deceives you for their own personal gain.






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






23. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.






24. Taking risks with personal finances or personal assets






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






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






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






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






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






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






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






32. The value of the second-best alternative that a person gives up when making one choice instead of another.






33. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.






34. An official record of a borrower's credit history & including such information as the amount and type of credit used & outstanding balances & and any delinquencies & bankruptcies & or tax liens.






35. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.






36. The original amount of money deposited or invested.






37. How fast money in savings account or investment grows.






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






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






40. A contract between an individual and an insurance company where the individual makes a payments that are invested by the company and repaid to the individual at a later date & generally during retirement.






41. A contract between an individual and an insurance company where the individual makes a payments that are invested by the company and repaid to the individual at a later date & generally during retirement.






42. 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)






43. 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.






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






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






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






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






48. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.






49. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.






50. Someone who knowingly deceives you for their own personal gain.