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






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






3. The original amount of money deposited or invested.






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






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






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






7. The chance or likelihood that something will happen.






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






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






10. 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)






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






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






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






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






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






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






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






19. 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.






20. 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.






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






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






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






24. 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.






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






26. The chance that an investment has been misrepresented.






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






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






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






30. 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.






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






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






33. 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.






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






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






36. The chance that an investment has been misrepresented.






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






40. The fee paid for insurance protection.






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






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






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






44. 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.






45. 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.






46. Money earned from investments and employment.






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






48. 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.






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






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