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. Taking risks with personal finances or personal assets






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






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






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






5. 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.






6. The original amount of money deposited or invested.






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






8. 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.






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






10. 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.






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






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






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






14. The original amount of money deposited or invested.






15. The fee paid for insurance protection.






16. 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.






17. The chance or likelihood that something will happen.






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






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






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






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






22. 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.






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






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






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






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






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






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






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






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






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






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






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






34. 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.






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






36. The fee paid for insurance protection.






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






38. 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.






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






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






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






42. The chance that an investment has been misrepresented.






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






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






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






46. 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.






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






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






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