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






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






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






4. Taking risks with personal finances or personal assets






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






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






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






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 fee paid for insurance protection.






11. The chance or likelihood that something will happen.






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






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






14. 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)






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






16. Anything subtracted from your gross income.






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






18. Anything subtracted from your gross income.






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






20. An establishment that collects and distributes credit history info. of individuals & business.






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






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






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






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






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






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






29. 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.






30. 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.






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






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 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.






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






35. The original amount of money deposited or invested.






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






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






38. An establishment that collects and distributes credit history info. of individuals & business.






39. Money earned from investments and employment.






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






41. Payment for the use of someone else's money






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






43. 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.






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






45. 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.






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






48. 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.






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






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