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






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






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






5. Taking risks with personal finances or personal assets






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






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






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






9. 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.






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






11. The fee paid for insurance protection.






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






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






16. 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.






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






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






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






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






22. 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.






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






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






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






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






27. 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.






28. The chance that an investment has been misrepresented.






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






30. 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.






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






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






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






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






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






36. Anything subtracted from your gross income.






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






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






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






40. The chance or likelihood that something will happen.






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






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






43. 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)






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






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






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






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






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






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






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