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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 person or company to whom money is owed.






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






3. The original amount of money deposited or invested.






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






5. 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.






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






7. The fee paid for insurance protection.






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






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






10. 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.






11. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).






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






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






14. 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.






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






16. Taking risks with personal finances or personal assets






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






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






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






20. The chance that an investment has been misrepresented.






21. 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.






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






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






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






25. The chance or likelihood that something will happen.






26. Taking risks with personal finances or personal assets






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






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






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






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






31. 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.






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






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






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






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






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






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






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






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






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






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






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






43. 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.






44. The chance that an investment has been misrepresented.






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






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






47. Anything subtracted from your gross income.






48. 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.






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






50. The chance or likelihood that something will happen.