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Financial Literacy Vocab

  • 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. The original amount of money deposited or invested.

2. 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)

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

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

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

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

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

8. 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.

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

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

11. The fee paid for insurance protection.

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

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

14. The fee paid for insurance protection.

15. 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.

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

17. Anything subtracted from your gross income.

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

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

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

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

22. Anything subtracted from your gross income.

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

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

25. Money earned from investments and employment.

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

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

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

29. 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.

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

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

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

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

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

35. 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.

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

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

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

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

40. The chance that an investment has been misrepresented.

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

42. Taking risks with personal finances or personal assets

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

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

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

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

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

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

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

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