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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 plan for managing money & dividing up expected income and expenses among spending and saving options based on personal goals during a given time period.






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






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






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






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






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






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






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






9. 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.






10. 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.






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






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






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






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






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






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






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






18. 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)






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






20. 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.






21. The fee paid for insurance protection.






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






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






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






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






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






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






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






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






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






31. 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.






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






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






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






35. 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.






36. Money earned from investments and employment.






37. The chance or likelihood that something will happen.






38. Taking risks with personal finances or personal assets






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






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






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






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






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






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






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






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






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






48. Anything subtracted from your gross income.






49. 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.






50. 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.