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






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






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






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






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






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






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






8. The chance or likelihood that something will happen.






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






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






11. 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)






12. 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.






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






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






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






16. Money earned from investments and employment.






17. 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.






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






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






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






21. 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.






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






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






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






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






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






27. 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.






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






29. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






45. 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.






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






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






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






49. 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.






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






Can you answer 50 questions in 15 minutes?



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