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






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






3. 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.






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






5. Taking risks with personal finances or personal assets






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






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






8. 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.






9. Money earned from investments and employment.






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






11. The chance or likelihood that something will happen.






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






13. 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.






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






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






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






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






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






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






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






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






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






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






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 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.






26. 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.






27. 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)






28. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.






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






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






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






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






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






34. The fee paid for insurance protection.






35. Anything subtracted from your gross income.






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






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






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






39. 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.






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






41. 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.






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






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






44. 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.






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






46. 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.






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






48. A purposeful course of action or purpose in life that generally provides income






49. The original amount of money deposited or invested.






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