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. 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.






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






3. 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.






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






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






6. Anything subtracted from your gross income.






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. Taking risks with personal finances or personal assets






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






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






11. 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)






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






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






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






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






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






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






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






19. 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.






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






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






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






23. 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.






24. 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.






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






26. 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.






27. The chance that an investment has been misrepresented.






28. 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.






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






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






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






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






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






34. Money earned from investments and employment.






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






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






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






38. 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.






39. 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.






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






41. 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.






42. 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.






43. 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.






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






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






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






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






48. Anything subtracted from your gross income.






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






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