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






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






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






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






6. 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)






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






8. 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)






9. The fee paid for insurance protection.






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






11. The original amount of money deposited or invested.






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






13. Taking risks with personal finances or personal assets






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






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






16. The chance that an investment has been misrepresented.






17. 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.






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






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






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






21. 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.






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






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






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






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






26. The fee paid for insurance protection.






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






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






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






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






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






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






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






36. Anything subtracted from your gross income.






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






38. The chance or likelihood that something will happen.






39. 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.






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






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






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






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






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






45. 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.






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






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






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






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






50. 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.