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






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






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






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






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






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






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






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






9. The chance that an investment has been misrepresented.






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






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






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






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






15. Anything subtracted from your gross income.






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






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






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






19. 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.






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






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






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






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






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






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






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






27. 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.






28. The chance or likelihood that something will happen.






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






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






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






32. 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.






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






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






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






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






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






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






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






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






41. 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.






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. Anything subtracted from your gross income.






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






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






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






47. Taking risks with personal finances or personal assets






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






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






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