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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. 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.






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






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 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.






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






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






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






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






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






10. The chance that an investment has been misrepresented.






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






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






14. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.






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






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






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






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






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






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






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






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






24. Anything subtracted from your gross income.






25. 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.






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






27. 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.






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






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






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






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






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






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






34. The fee paid for insurance protection.






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






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






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






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






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






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






41. 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.






42. The original amount of money deposited or invested.






43. The original amount of money deposited or invested.






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






45. The fee paid for insurance protection.






46. Money earned from investments and employment.






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






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






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






50. 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.