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






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






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






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






5. The chance or likelihood that something will happen.






6. 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.






7. 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.






8. 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.






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






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






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






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






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






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






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






17. 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.






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






19. 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.






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






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






22. Wages or salary before deductions for taxes and other purposes.






23. The chance that an investment has been misrepresented.






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






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






26. Taking risks with personal finances or personal assets






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






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






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






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






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






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






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






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






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






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






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






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






39. 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.






40. Wages or salary before deductions for taxes and other purposes.






41. The fee paid for insurance protection.






42. 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.






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






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






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






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






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






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






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






50. 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.