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






2. The chance or likelihood that something will happen.






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






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






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






6. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.






7. Taking risks with personal finances or personal assets






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






9. A person or company to whom money is owed.






10. 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.






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






12. An amount of money that the member or insured pays directly to a provider at the time services are rendered.






13. 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.






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






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






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






17. Anything subtracted from your gross income.






18. Taking risks with personal finances or personal assets






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






20. The fee paid for insurance protection.






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






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






23. 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.






24. The fee paid for insurance protection.






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






26. The chance that an investment has been misrepresented.






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






28. 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.






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






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. Money earned from investments and employment.






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






33. 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.






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






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






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






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






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






39. The original amount of money deposited or invested.






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






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






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






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






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






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






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






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






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






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






50. A person who owns property and rents it to another.