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






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






4. 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)






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






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






7. 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.






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






9. The chance that an investment has been misrepresented.






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






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






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






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






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






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






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






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






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






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 person who owns property and rents it to another.






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






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






24. 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.






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






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






27. Anything subtracted from your gross income.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






48. The chance that an investment has been misrepresented.






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






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