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






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






3. Money earned from investments and employment.






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






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






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






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






8. 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.






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






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






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






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






13. The chance or likelihood that something will happen.






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






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






16. The fee paid for insurance protection.






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






18. The fee paid for insurance protection.






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






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






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






22. 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)






23. 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.






24. The original amount of money deposited or invested.






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






26. Money earned from investments and employment.






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






28. Taking risks with personal finances or personal assets






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






30. 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.






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






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






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






34. 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.






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






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






38. The chance that an investment has been misrepresented.






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






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






41. 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.






42. The chance or likelihood that something will happen.






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






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






45. 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.






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






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






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






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






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






Can you answer 50 questions in 15 minutes?



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