Test your basic knowledge |

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






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






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






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






5. 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.






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






7. The chance or likelihood that something will happen.






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






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






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






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






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






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






14. 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.






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






16. 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.






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






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






19. 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.






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






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






22. 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.






23. Anything subtracted from your gross income.






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






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






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






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






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






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






31. 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.






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






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






34. 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)






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






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






37. 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.






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






39. 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.






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






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






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






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






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






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






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






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






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






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






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