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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. Money earned from investments and employment.






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






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






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






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






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






7. A person who pays rent; the legal name for a renter.






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






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






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






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






12. Taking risks with personal finances or personal assets






13. 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.






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






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






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






17. 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)






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






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






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






21. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.






22. 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.






23. The original amount of money deposited or invested.






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






25. 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.






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






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






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






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






30. 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.






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






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






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






34. The original amount of money deposited or invested.






35. 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.






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






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






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






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






40. 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.






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






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






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






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






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






46. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.






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






48. 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.






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






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