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 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.






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






3. 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.






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






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






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






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






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






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






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






11. The chance or likelihood that something will happen.






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






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






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






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






16. 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.






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






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






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






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






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






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






23. The original amount of money deposited or invested.






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






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






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






27. 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)






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






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






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






31. 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.






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






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






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






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






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






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






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






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






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






41. 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.






42. 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.






43. Taking risks with personal finances or personal assets






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






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






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






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






48. The chance or likelihood that something will happen.






49. 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.






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