Financial Literacy Exam
credit - Answer an amount of money that a lender or business allows a person to use to
purchase goods and services with a promise to repay the money, usually with interest
lender - Answer a person or business that loans money
interest - Answer money paid by a borrower in exchange for using a lender's money for a
certain period of time
borrower - Answer someone who is borrowing money with a plan to pay it back
income tax - Answer a yearly federal tax on a person's earnings
payroll tax - Answer money withheld from a worker's paycheck to fund federal programs such
as Social Security and Medicare
sales tax - Answer a city or state tax added to the price of an item you buy
property tax - Answer a yearly tax on homes, land, and other property that helps pay for local
needs such as schools, firefighters, etc.
gross income - Answer the total amount of money a worker earns BEFORE taxes and other
deductions are withheld
net income - Answer the total amount of money a worker takes home AFTER taxes and other
deductions are withheld
debit card - Answer a card issued by a bank that a consumer uses to pay for purchases with
money from a checking account
balanced budget - Answer an organized plan for money in which the total income equals the
total expenses for a given period of time
balance - Answer the total amount of money in a bank account at any given time
electronic payment - Answer a payment, made over the Internet, that allows money to be
taken directly from a consumer's bank account
credit - Answer an amount of money that a lender or business allows a person to use to
purchase goods and services with a promise to repay the money, usually with interest
lender - Answer a person or business that loans money
interest - Answer money paid by a borrower in exchange for using a lender's money for a
certain period of time
borrower - Answer someone who is borrowing money with a plan to pay it back
income tax - Answer a yearly federal tax on a person's earnings
payroll tax - Answer money withheld from a worker's paycheck to fund federal programs such
as Social Security and Medicare
sales tax - Answer a city or state tax added to the price of an item you buy
property tax - Answer a yearly tax on homes, land, and other property that helps pay for local
needs such as schools, firefighters, etc.
gross income - Answer the total amount of money a worker earns BEFORE taxes and other
deductions are withheld
net income - Answer the total amount of money a worker takes home AFTER taxes and other
deductions are withheld
debit card - Answer a card issued by a bank that a consumer uses to pay for purchases with
money from a checking account
balanced budget - Answer an organized plan for money in which the total income equals the
total expenses for a given period of time
balance - Answer the total amount of money in a bank account at any given time
electronic payment - Answer a payment, made over the Internet, that allows money to be
taken directly from a consumer's bank account
