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






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






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






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






5. 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.






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






7. Taking risks with personal finances or personal assets






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






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






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






11. 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.






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






13. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.






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






15. The fee paid for insurance protection.






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






18. 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.






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






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






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






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






23. 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.






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






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






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






27. 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.






28. Anything subtracted from your gross income.






29. The chance or likelihood that something will happen.






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






31. 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)






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






33. 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.






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






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






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






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






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






39. 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.






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






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






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






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






44. 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.






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






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






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






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






49. 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.






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