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






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






3. 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.






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






5. The original amount of money deposited or invested.






6. 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.






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






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






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






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






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






12. 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.






13. 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.






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






15. 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.






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






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






18. 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.






19. The fee paid for insurance protection.






20. The chance that an investment has been misrepresented.






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






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






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






24. 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.






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






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






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






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






29. 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.






30. The chance or likelihood that something will happen.






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






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






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






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






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






36. Taking risks with personal finances or personal assets






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






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






39. 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.






40. Money earned from investments and employment.






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






42. 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.






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






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






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






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






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






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






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






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