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






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






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






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






5. 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.






6. 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.






7. 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)






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






9. The fee paid for insurance protection.






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






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






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






13. 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.






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






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






16. The chance that an investment has been misrepresented.






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






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






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






21. 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.






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






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






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






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






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






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






28. The chance or likelihood that something will happen.






29. Money earned from investments and employment.






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






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






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






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






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






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






36. 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.






37. 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.






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






39. Taking risks with personal finances or personal assets






40. The original amount of money deposited or invested.






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






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






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






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






46. 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.






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






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






49. Money earned from investments and employment.






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