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






2. 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.






3. 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.






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






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






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






7. 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.






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






9. 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.






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






11. The original amount of money deposited or invested.






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






13. Taking risks with personal finances or personal assets






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. 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.






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






17. 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.






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






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






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






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






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






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






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






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






26. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.






27. The chance or likelihood that something will happen.






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






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






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






31. 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.






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






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






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






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






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






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






39. 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)






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






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






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






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






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






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






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






47. Taking risks with personal finances or personal assets






48. 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.






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






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