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






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






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






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






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






6. 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.






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






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






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. How fast money in savings account or investment grows.






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






12. Taking risks with personal finances or personal assets






13. The original amount of money deposited or invested.






14. The original amount of money deposited or invested.






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






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






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






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






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






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






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






22. 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.






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






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






25. Taking risks with personal finances or personal assets






26. 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)






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






28. The chance that an investment has been misrepresented.






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






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






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






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






33. 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.






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






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






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






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






39. The chance or likelihood that something will happen.






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






41. The chance or likelihood that something will happen.






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






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






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






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






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






47. Money earned from investments and employment.






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






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






50. 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)