Test your basic knowledge |

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






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






3. 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.






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






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






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






7. 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.






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






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






10. 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.






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






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






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






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






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






16. 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)






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






18. 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.






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






20. Taking risks with personal finances or personal assets






21. The original amount of money deposited or invested.






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






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






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






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






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






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






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






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






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






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






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






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






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






35. The fee paid for insurance protection.






36. Taking risks with personal finances or personal assets






37. Anything subtracted from your gross income.






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






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






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






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






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






43. 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.






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






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






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






47. 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.






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






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






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