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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. How fast money in savings account or investment grows.






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






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






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






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






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






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






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






9. The original amount of money deposited or invested.






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






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






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






13. The fee paid for insurance protection.






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






15. 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.






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






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






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






19. Anything subtracted from your gross income.






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






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






23. The chance that an investment has been misrepresented.






24. 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.






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






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






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






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






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






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






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






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






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






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






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






36. 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.






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






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






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






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






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






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






43. 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.






44. 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.






45. Taking risks with personal finances or personal assets






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






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






48. 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.






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






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