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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. How fast money in savings account or investment grows.






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






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






4. 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.






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






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






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






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






9. 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.






10. 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.






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






12. 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.






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






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






15. 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.






16. 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.






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






18. 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.






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






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






21. 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.






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






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






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






25. The chance that an investment has been misrepresented.






26. The fee paid for insurance protection.






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






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






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






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






32. 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.






33. Money earned from investments and employment.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






49. 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.






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