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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. Wages or salary before deductions for taxes and other purposes.






2. 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.






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






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






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






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






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






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






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






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






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






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






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






14. 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.






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






16. The chance that an investment has been misrepresented.






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






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






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






20. 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)






21. 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.






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






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






25. 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.






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






27. 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.






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






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






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






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






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






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






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






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






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






37. The chance or likelihood that something will happen.






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






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






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






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






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






43. The fee paid for insurance protection.






44. 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.






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






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






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






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






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






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