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






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






3. The fee paid for insurance protection.






4. The chance that an investment has been misrepresented.






5. 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.






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






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






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






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






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






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






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






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






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






15. 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.






16. The fee paid for insurance protection.






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






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






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






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






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






22. 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.






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






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






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






26. Taking risks with personal finances or personal assets






27. Taking risks with personal finances or personal assets






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






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






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






31. The chance or likelihood that something will happen.






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






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






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






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






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






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






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






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






40. 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.






41. The original amount of money deposited or invested.






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






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






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






45. 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.






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






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






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






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






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