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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. The fee paid for insurance protection.






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






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






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






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






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






7. 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.






8. 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.






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






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






11. 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.






12. Money earned from investments and employment.






13. 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.






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






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






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






17. 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)






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






19. 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.






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






21. 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.






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






23. The fee paid for insurance protection.






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






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






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






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






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






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






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






31. 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.






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






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






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. Payment for the use of someone else's money






36. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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