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






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






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






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






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






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






7. The chance that an investment has been misrepresented.






8. 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.






9. Taking risks with personal finances or personal assets






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






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






12. 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.






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






14. 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)






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






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






17. Costs paid when buying a house or real estate.






18. 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.






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






20. 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.






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






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






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






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






25. 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.






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






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






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






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






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






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






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






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






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






35. Money earned from investments and employment.






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






37. The chance that an investment has been misrepresented.






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






39. Costs paid when buying a house or real estate.






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






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






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






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






44. The fee paid for insurance protection.






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






46. 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.






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






48. The chance or likelihood that something will happen.






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






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