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






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






3. Money earned from investments and employment.






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






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






6. The chance that an investment has been misrepresented.






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






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






9. 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.






10. The fee paid for insurance protection.






11. The original amount of money deposited or invested.






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






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






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






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






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






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






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






20. Taking risks with personal finances or personal assets






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






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






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






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






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






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






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






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






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






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






31. 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.






32. 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.






33. 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.






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






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






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






37. Taking risks with personal finances or personal assets






38. 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.






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






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






41. 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.






42. The chance or likelihood that something will happen.






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






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






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






46. The chance or likelihood that something will happen.






47. Money earned from investments and employment.






48. 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)






49. 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.






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