Test your basic knowledge |

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






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






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






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






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






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






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






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






9. Money earned from investments and employment.






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






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






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






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






15. 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.






16. 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.






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






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






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






20. Taking risks with personal finances or personal assets






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






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






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






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






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






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






27. The fee paid for insurance protection.






28. Anything subtracted from your gross income.






29. The fee paid for insurance protection.






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






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






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






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






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






35. 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.






36. 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)






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






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






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






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






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






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






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






44. 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.






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






46. The chance or likelihood that something will happen.






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






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






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






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