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






2. Anything subtracted from your gross income.






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






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






5. 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.






6. 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.






7. 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.






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






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






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






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 plan for managing money & dividing up expected income and expenses among spending and saving options based on personal goals during a given time period.






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






14. 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)






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






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






17. The fee paid for insurance protection.






18. Taking risks with personal finances or personal assets






19. 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.






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






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






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






23. Money earned from investments and employment.






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






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






26. 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)






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






28. 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.






29. 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.






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






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






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






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






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






35. The chance that an investment has been misrepresented.






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






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






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






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






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






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






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






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






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






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






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






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






48. 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.






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






50. The chance or likelihood that something will happen.