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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 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.






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






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






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






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






6. 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.






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






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






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






10. The chance or likelihood that something will happen.






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






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






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






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






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






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






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






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






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






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 plan for managing money & dividing up expected income and expenses among spending and saving options based on personal goals during a given time period.






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






23. 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.






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






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






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






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






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






30. 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.






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






32. 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.






33. The original amount of money deposited or invested.






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






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






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






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






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






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






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






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






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






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






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






46. 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.






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






48. Money earned from investments and employment.






49. Anything subtracted from your gross income.






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