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






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






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






4. The fee paid for insurance protection.






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






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






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






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






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






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






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






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






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






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






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






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






17. The fee paid for insurance protection.






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






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






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






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






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






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






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






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






26. 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.






27. 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.






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






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






30. 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.






31. The chance that an investment has been misrepresented.






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






33. 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.






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






35. 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.






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






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






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






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






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






41. Anything subtracted from your gross income.






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






43. 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.






44. Taking risks with personal finances or personal assets






45. 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.






46. 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.






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






48. 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.






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






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