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






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






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






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






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






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






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






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






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






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






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






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






13. The original amount of money deposited or invested.






14. Anything subtracted from your gross income.






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






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






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






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






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






20. 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.






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






22. 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.






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






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






25. 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.






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






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






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






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






30. 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.






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






32. 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.






33. 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)






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






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






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






37. 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.






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






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






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






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






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






43. The fee paid for insurance protection.






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






45. Money earned from investments and employment.






46. 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.






47. Taking risks with personal finances or personal assets






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. Payment for the use of someone else's money