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 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. 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.






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






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






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






6. Anything subtracted from your gross income.






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






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






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






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






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






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






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






14. 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.






15. The original amount of money deposited or invested.






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






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






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






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






20. 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.






21. 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.






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






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






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






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






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






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






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






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






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






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






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






33. The original amount of money deposited or invested.






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






35. A company that makes loans for the purchase of a house or other real estate.






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






37. 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.






38. The chance that an investment has been misrepresented.






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






40. 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.






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






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






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






44. 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)






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






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






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






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






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






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