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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 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.






2. Money earned from investments and employment.






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






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






5. The original amount of money deposited or invested.






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






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






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






9. 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)






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






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






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






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






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






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






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






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






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






19. The chance or likelihood that something will happen.






20. 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)






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






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






23. 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.






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






25. Taking risks with personal finances or personal assets






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






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






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






29. 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.






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






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






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






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






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






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






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






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






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






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






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






41. 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.






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






43. 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.






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






45. Anything subtracted from your gross income.






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






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






48. 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.






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






50. The chance that an investment has been misrepresented.