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






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






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






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






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






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






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






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






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






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






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






12. Money earned from investments and employment.






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






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






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






17. Taking risks with personal finances or personal assets






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






19. The fee paid for insurance protection.






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






21. 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.






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






23. Anything subtracted from your gross income.






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






25. 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.






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






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






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






29. The chance or likelihood that something will happen.






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






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






32. 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.






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






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






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






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






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






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






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






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






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






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






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






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






45. 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.






46. 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.






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






48. 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)






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. 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.