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






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






3. 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.






4. The fee paid for insurance protection.






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






6. 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.






7. The original amount of money deposited or invested.






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






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






10. 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.






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






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






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






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






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






16. 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.






17. 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.






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






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






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






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






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






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






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






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






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






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






28. 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.






29. Taking risks with personal finances or personal assets






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






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






32. 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.






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






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






35. 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)






36. Anything subtracted from your gross income.






37. 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.






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






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






40. 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.






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






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






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






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






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






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






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






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






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






50. The chance that an investment has been misrepresented.