Test your basic knowledge |

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






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






4. 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.






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






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






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






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






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






10. 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.






11. 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.






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






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






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






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






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






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






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






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






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






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






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






23. 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.






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






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






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






27. The chance or likelihood that something will happen.






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






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






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






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






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






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






35. 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.






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






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






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






39. 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.






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






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






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






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






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






45. The original amount of money deposited or invested.






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






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






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






49. The chance that an investment has been misrepresented.






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