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






2. 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.






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






4. 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.






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






6. 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.






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






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






9. 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.






10. 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)






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






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






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






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






15. 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)






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






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






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






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






20. The original amount of money deposited or invested.






21. 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.






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






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






24. Taking risks with personal finances or personal assets






25. Money earned from investments and employment.






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






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






28. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






Can you answer 50 questions in 15 minutes?



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