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






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






3. 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.






4. 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.






5. The chance that an investment has been misrepresented.






6. 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.






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






8. 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.






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






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






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. 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)






13. Taking risks with personal finances or personal assets






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






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






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






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






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






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






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






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






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






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






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






25. 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.






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






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






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






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






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






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






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






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






34. Anything subtracted from your gross income.






35. 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)






36. 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.






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






38. 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.






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






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






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






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






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






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






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






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






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






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






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






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