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. The original amount of money deposited or invested.






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






3. 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.






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






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






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






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






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






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






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






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






12. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






29. The fee paid for insurance protection.






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






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






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






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






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






35. 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)






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






37. 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.






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






39. 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)






40. 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.






41. Anything subtracted from your gross income.






42. 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.






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






44. 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.






45. 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.






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






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






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






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






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