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






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






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 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.






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






6. 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.






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






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






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






10. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.






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






12. 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.






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






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






15. 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)






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






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






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






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






20. The chance that an investment has been misrepresented.






21. 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.






22. The original amount of money deposited or invested.






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






24. 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.






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






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






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






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






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






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






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






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






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






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






36. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.






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






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






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






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






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






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






43. The chance or likelihood that something will happen.






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






45. 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.






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






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






48. 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.






49. 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.






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