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






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






3. The chance or likelihood that something will happen.






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






5. 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.






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






7. Anything subtracted from your gross income.






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






9. 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.






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






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






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






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






14. The chance that an investment has been misrepresented.






15. 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.






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






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






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






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






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






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






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






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






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






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






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






27. 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.






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






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






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






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






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






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






34. The fee paid for insurance protection.






35. 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.






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






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






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






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






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






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






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






43. 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)






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






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






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






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






49. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.






50. 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.