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. Money earned from investments and employment.






2. Money earned from investments and employment.






3. 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.






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






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






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






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






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






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






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






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






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






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






14. 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.






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






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






17. 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.






18. 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.






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






20. 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.






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






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






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






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






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






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






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






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






29. 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.






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






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






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






33. The original amount of money deposited or invested.






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






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






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






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






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






39. 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.






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






41. 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.






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






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






44. 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.






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






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. Payment for the use of someone else's money






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






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






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