Finance Vocabulary Quiz

A qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. Employers offering a 401(k) plan may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings accrue on a tax-deferred basis.

• 401K
• Checking Account
• Interest Rate
• Debt

A financial plan used to forecast and track income and expenses.

• Investment
• Savings
• Budget
• Liability

Money put aside for profit: A financial holding that is purchased with the expectation of increased value; investments can be secured or unsecured, and the expected value of return on one's investment is usually dependent on the degree of risk involved.

• Available Balance
• Investment
• Interest Rate
• Liability

Money saved over a period of time. Funds not spent and set aside, often on a regular basis, for later use.

• Checking Account
• Debt
• Budget
• Savings

Money that you must repay someone.

• Liability
• Debt
• Regular Savings
• Investment

An obligation to pay money to another party

• Liability
• 401K
• Investment
• Savings

An account that allows customers opportunity to write checks on money deposited. This status is also called demand deposits, because once money is deposited, it can be demanded from the bank.

• Interest Rate
• Budget
• 401K
• Checking Account

Requires you to make regular monthly deposits, up to set limits. Some restrictions may be placed upon the account (e.g. limiting the amount of withdrawals or requiring force a deposit every month); however, their higher interest rates make up for the restrictions.

• Available Balance
• Savings
• Regular Savings
• Liability

What you pay lenders for the use of their money. It is the price of a loan expressed in an annual percentage rate.

• Interest Rate
• Investment
• Budget
• Debt

The balance of an account less any hold, uncollected funds, and restrictions against the account.

• Investment
• 401K
• Checking Account
• Available Balance