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






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






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






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






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






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






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






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






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






10. How fast money in savings account or investment grows.






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






12. Money earned from investments and employment.






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






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






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






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






17. 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.






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






19. The chance or likelihood that something will happen.






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






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






22. 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.






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






24. The original amount of money deposited or invested.






25. Taking risks with personal finances or personal assets






26. 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.






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






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






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






30. 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.






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






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






33. Money earned from investments and employment.






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






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






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






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






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






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






40. Taking risks with personal finances or personal assets






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






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






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






44. 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.






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






46. 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.






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






48. 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.






49. Anything subtracted from your gross income.






50. 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.