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






2. The fee paid for insurance protection.






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






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






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






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






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






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






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






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






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






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






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






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






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






16. 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.






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






18. Taking risks with personal finances or personal assets






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






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






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






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






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






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






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






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. 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.






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






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






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






31. 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.






32. 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.






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






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






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






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






37. 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.






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






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






40. The chance that an investment has been misrepresented.






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






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






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






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






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






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






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






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






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






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