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






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






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






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






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






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






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






8. 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.






9. 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)






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. Payment for the use of someone else's money






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






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






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






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






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






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






18. The chance that an investment has been misrepresented.






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






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






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






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






24. Taking risks with personal finances or personal assets






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






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






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






28. Anything subtracted from your gross income.






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






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






31. Taking risks with personal finances or personal assets






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






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






34. 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.






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






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






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 person who owns property and rents it to another.






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






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






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






42. Money earned from investments and employment.






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






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






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






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






47. Anything subtracted from your gross income.






48. 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.






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






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