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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 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.






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






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






5. Anything subtracted from your gross income.






6. Taking risks with personal finances or personal assets






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






8. 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.






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






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






11. 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.






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






13. The fee paid for insurance protection.






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






15. 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.






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






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






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






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






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






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






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






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






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






25. 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.






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






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






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






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






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






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






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






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






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






35. Anything subtracted from your gross income.






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






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






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






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






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






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






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






43. 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.






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






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






46. Costs paid when buying a house or real estate.






47. 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.






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






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






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