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






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






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






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






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






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






7. 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.






8. 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)






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






10. 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.






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






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






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






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






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






16. 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.






17. The chance that an investment has been misrepresented.






18. 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.






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






20. 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.






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






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






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






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






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






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






27. 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.






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






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. The chance or likelihood that something will happen.






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






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






33. Anything subtracted from your gross income.






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






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






36. 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.






37. 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.






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






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






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






41. 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.






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






43. The original amount of money deposited or invested.






44. 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.






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






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






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






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






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






50. Anything subtracted from your gross income.