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. Costs paid when buying a house or real estate.






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






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






4. Taking risks with personal finances or personal assets






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






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






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






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






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






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






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






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






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






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






15. 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.






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






17. Anything subtracted from your gross income.






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






19. 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.






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






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






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






23. Money earned from investments and employment.






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






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






26. The fee paid for insurance protection.






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






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






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






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






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






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






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






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






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






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






40. Anything subtracted from your gross income.






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






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






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






44. The fee paid for insurance protection.






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






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






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






48. Money earned from investments and employment.






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






50. 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)