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 plan for managing money & dividing up expected income and expenses among spending and saving options based on personal goals during a given time period.






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






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






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






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






6. Anything subtracted from your gross income.






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






8. 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.






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






10. Taking risks with personal finances or personal assets






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






12. The original amount of money deposited or invested.






13. The original amount of money deposited or invested.






14. 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.






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






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






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






18. 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.






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






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






21. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






36. 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.






37. 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.






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






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






40. 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)






41. 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.






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






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






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






45. Money earned from investments and employment.






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






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






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






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






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