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






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






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






6. 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)






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






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






9. The original amount of money deposited or invested.






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






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






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






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






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






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






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






18. The fee paid for insurance protection.






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






20. 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.






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






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






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






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






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






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






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






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






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






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






33. Taking risks with personal finances or personal assets






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






35. Anything subtracted from your gross income.






36. The fee paid for insurance protection.






37. 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.






38. 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.






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






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






41. Anything subtracted from your gross income.






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






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






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






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






46. The chance or likelihood that something will happen.






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






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






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






50. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.