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






2. Money earned from investments and employment.






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






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






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






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






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






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






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






10. 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)






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






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






13. 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.






14. 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.






15. 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.






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






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






18. 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.






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






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






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






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






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






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






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






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






27. The fee paid for insurance protection.






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






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






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






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






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






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






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






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






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






38. 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.






39. 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.






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






41. The chance that an investment has been misrepresented.






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






43. Money earned from investments and employment.






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






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






46. 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.






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






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






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






50. The chance that an investment has been misrepresented.