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






2. The fee paid for insurance protection.






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






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






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






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






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






8. Anything subtracted from your gross income.






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






10. Taking risks with personal finances or personal assets






11. 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.






12. 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.






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






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






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






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






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






18. Money earned from investments and employment.






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






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






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






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






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






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






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






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






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






28. 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)






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






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






31. Anything subtracted from your gross income.






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






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






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






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






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






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






39. The chance or likelihood that something will happen.






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






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






42. 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.






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






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






45. The fee paid for insurance protection.






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






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






48. 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.






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






50. The chance that an investment has been misrepresented.