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






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






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






4. The original amount of money deposited or invested.






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






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






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






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






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






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






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






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






13. The chance or likelihood that something will happen.






14. The chance that an investment has been misrepresented.






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






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






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






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






19. 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.






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






21. 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.






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






23. Money earned from investments and employment.






24. 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)






25. 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.






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






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






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






29. The original amount of money deposited or invested.






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






31. 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)






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






33. 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.






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






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






36. 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.






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






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






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






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






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






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






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






44. 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.






45. 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.






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






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






48. The fee paid for insurance protection.






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






50. 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.