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






2. The chance that an investment has been misrepresented.






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






4. 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.






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






6. 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.






7. Anything subtracted from your gross income.






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






9. 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.






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






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






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






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






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






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






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






17. 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.






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






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






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






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






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






23. The fee paid for insurance protection.






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






25. 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.






26. 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.






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






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






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






30. 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)






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






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






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






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






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






36. The chance or likelihood that something will happen.






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






38. Money earned from investments and employment.






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






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






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






42. Anything subtracted from your gross income.






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






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






45. 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.






46. The fee paid for insurance protection.






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






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






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






50. Money earned from investments and employment.