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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 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.






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






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






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






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






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






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






8. Money earned from investments and employment.






9. Taking risks with personal finances or personal assets






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






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






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






13. 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.






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






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






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






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






20. The chance that an investment has been misrepresented.






21. The chance or likelihood that something will happen.






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






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






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






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






26. 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.






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






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






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






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






31. 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.






32. The original amount of money deposited or invested.






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






34. 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.






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






36. 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.






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






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






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






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






41. 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.






42. A plastic card used to deduct a purchase amount directly from your checking account.






43. The chance or likelihood that something will happen.






44. Anything subtracted from your gross income.






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






46. 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.






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






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






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






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