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Financial Mgt Vocabulary

Total questions: 38

Worksheet time: 38mins

Name
Class
Date
1.

What is a FIXED Mortgage?

a)

Money a employer offers to a employee's IRA or other retirement plan

b)

denoting an original sum invested or lent

c)

A type of installment loan, similar to a student loan or personal loan, with fixed monthly payments. Where the interest rate does not change for the life of the loan.

d)

a mortgage loan that's more than the current value of a property

2.

What is Capital GAIN?

a)

An account at a bank against which checks can be drawn by the account depositor

b)

Increase in a capital asset value and is considered to be realized when the asset is sold

c)

Occurs when you feel security or investment for less that the original purchase price or its adjusted basis

d)

Denoting an original sum invested or lent

3.

What is Capitial LOSS?

a)

Occurs when you sell security or investment for less than the original purchase price or its adjusted basis

b)

Possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations.

c)

The money that a bank has obtained from its shareholders and other investors and any profit that has made and not paid out

d)

Increase in a capital asset value and is considered to be realized when the asset is sold

4.

What is Debt?

a)

The gain/loss of an investment over a certain period of time

b)

A thing that is borrowed, especially a sum of money that is expected to be paid back with interest

c)

The money that the bank has obtained from its shareholders, other investors, or any profit that has made and not been paid out

d)

Something borrowed by and individual from another, like loans, that the borrower is required to repay the balance of by a certain date

5.

What is a Loan?

a)

Denoting an original sum invested or lent

b)

A thing that is borrowed, especially a sum of money that is expected to be paid back with interest

c)

Money an employer offers to an employee's IRA or other retirement plan

d)

Uncertainty about future deviation from earrings or expected income

6.

What is Capital?

a)

A stock of accumulated goods especially at a specified time and in contrast to income received during a specified period

also : the value of these accumulated goods

b)

Denoting an original Sum invested or lent

c)

An opinion of a particular credit agency regarding the ability and willingness an individual has to fulfill its financial obligations in completeness and within the established due dates, signifies the likelihood a debtor with default

d)

The act of computing the preset value of future periodical payments

7.

What is Capitalization?

a)

A mortgage loan that's more than the current value of property

b)

Uncertainty about future deviation from earnings or expected income

c)

The act of computing the present value of a future periodical payments

d)

denoting an original sum invested or lent

8.

What is Roth IRA?

a)

Measure of the performance and efficiency of an investment

b)

An individual retirement account that provides tax-free growth and withdrawals

c)

a Safe place to store cash and earn interest

d)

A mortgage loan that's more than the current value of a property

9.

What is a Checking Account?

a)

A bankcard that allows depositors to pay third parties directly from their bank account balances electronically

b)

a type of plastic/metal payment card in which charges are made against a line pf credit instead of the account holder's cash deposit

c)

A safe place to store cash and earn interest

d)

An account at a bank against which checks can be drawn by the account depositor

10.

What is underwater?

a)

Denoting an original sum invested or lent

b)

Measure of the performance and efficiency of an investment

c)

A mortgage loan that's more than the current value of a property

d)

method used to calculate interest paid on both the principal and on accrued interest

11.

What Is C.O.L.A ( Cost of Living Adjustment)?

a)

A charge usually of money imposed by authority on a persons/property for public purposes

b)

Automatic increase in wages, Social Security, pensions, etc., to cover the rising cost of living due to inflation

c)

An estimate of income and expenditure for a set period of time

d)

Denoting an original sum invested or lent

12.

What is TAX?

a)

Automatic increase in wages, Social Security, pensions, etc...to cover the rising cost of living due to inflation.

b)

a charge of money imposed by authority on persons/property for public purposes.

c)

increase in a capital asset value and is considered to be realized when the asset is sold.

d)

a type of installment loan, similar to a student loan or personal loan, with fixed monthly payments.

13.

What is compound interest?

a)

a mortgage loan that is more than the current value of a property.

b)

an individual retirement account that provides tax-free growth and withdrawals.

c)

a method used to calculate interest paid on both the principal and on accrued interest

d)

uncertainty about future deviation from earnings or expected income

14.

What is a Risk?

a)

uncertainty about future deviation earnings or expected income.

b)

possibility a loss resulting from a borrowers failure to repay a loan or meet contractual obligations.

c)

occurs when you sell security or investment for less than the original purchase price or it's adjusted basis.

d)

denoting an original sum investment or lent.

15.

What is Fair Market Value?

a)

automatic increase in wages, social security, pensions, etc., to cover the rising cost of living due to inflation.

b)

a charge usually of money imposed by authority on persons/ property for public purposes.

c)

an individual retirement account that provides tax-free grown and withdrawals.

d)

The price of property of a business or an asset that would sell for an open and competitive market.

16.

What is Debt-To-Equity Ratio (D/E)?

a)

method used to calculate interest paid on both the principal and on accrued interest.

b)

A measure of the relative contribution of the creditors and shareholders or owners in the capital employed in business.

c)

a charge usually of money imposed by authority on persons/ property for public purposes.

d)

terms of ownership convertible into cash; total resources of a person/business as cash, notes and accounts receivable, securities, inventories, goodwill, fixtures, machinery, or real estate.

17.

What is a Debit Card?

a)

A bankcard that allows depositors to pay third parties directly from their bank account balances electronically.

b)

terms of ownership convertible into cash; total resources of a person/ business, as cash, notes, and accounts receivable, securities, inventories, goodwill, fixtures, machinery, or real estate.

c)

a type of plastic/metal payment card in which charges are made against a line of credit instead of the account holders cash deposits.

d)

the measuring of how good your credit is and the quality of your credit based on how well it is rated and how well the amount of your credit is from poor to excellent.

18.

What is a Credit Card?

a)

a type of plastic/ metal payment card in which charges are made against a line of credit instead of the account holders cash deposits

b)

money a employer offers to a employees IRA or other retirement plan

c)

is the amount a lender charges a borrower and is a percentage of the principal- amount loaned.

d)

a contract represented by a policy which an individual, entity receives financial protection and reimbursement against losses from insurance companies.

19.

What is a Credit Rating?

a)

a safe place to store cash and earn interest.

b)

method used to calculate interest paid on both the principal and on accrued interest.

c)

an opinion of a particular credit agency regarding the ability and willingness an individual has to fulfill its financial obligations in completeness and within the established due dates, signifies the likelihood a debtor will default.

d)

measure of the performance and efficiency of an investment.

20.

What is budget?

a)

the price or property of a business or an asset that would sell for an open and competitive market

b)

An estimate of income and experience for a set period of time

c)

Money an employer offers to an employee's IRA or other retirement plan

d)

Method used to calculate interest paid on both the principle and on accrued interest

21.

What is Matching Contribution?

a)

The amount a lender chargers a borrower and is a percentage of the principal-amount loaned

b)

An account at a bank against which checks can be drawn by the account depositor

c)

Money an employer offers to an employee's IRA or other retirement plan

d)

A charge usually of money imposed by authority on persons/property for public purposes

22.

What is FAFSA (Free Application for Federal Student Aid)?

a)

A form that determines your financial aid from the government and most colleges

b)

A contract represented by a policy which an individual/entity receives financial protection and reimbursement against losses from insurance companies

c)

Uncertainty about future deviation from earrings or expected income

d)

A charge, usually of money imposed by authority on persons/property for public purposes

23.

What is Interest?

a)

Denoting an original sum invested

b)

An opinion of a particular credit agency regarding the ability and willingness an individual has to fulfill it's financial obligations in completeness and within the established due dates, and signifies the likelihood a debtor will default

c)

A type of installment loan, similar to a student loan or personal loa, with fixed monthly payments

d)

The amount a lender charges a borrower and is a percentage of the principal-amount loaned

24.

What is insurance?

a)

A form that determines your financial aid from the government and most colleges

b)

A contract represented by a policy which an individual/entity receives financial protection and reimbursement against losses from insurance companies

c)

Value held by a policy holder by an issuing life carrier upon a cancellation of a contract

d)

Denoting an original sum invested or lent

25.

What is Cash Value?

a)

A cost imposed on a consumer for obtaining credit

b)

The gain/loss of an investment over a certain period of time

c)

Denoting an original sum invested or lent

d)

Value held by a policy holder by an issuing life carrier upon a cancellation of a contract

26.

What is a savings account?

a)

An account which checks can be drawn by the depositor

b)

An account used as a safe place to store cash and earn interest

c)

a bankcard that allows depositors to pay third parties from their bank account balances electronically

d)

method used to calculate interest paid on both the principal and on accrued interest

27.

What is asset?

a)

Terms of ownership convertible into cash

b)

The obligation to deliver cash or another financial asset that can be delivered if there is an obligation

c)

A cost imposed on a consumer for obtaining credit

d)

Measure of the performance and efficiency of an investment

28.

What is Credit Score?

a)

The increase/decrease in the amount of money a business/institution/individual has

b)

Possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations

c)

The measuring of how good your credit is and the quality of your credit

d)

Measuring of the performance and efficiency of an investment

29.

What is Adjustable Mortgage APR?

a)

A cost imposed on a consumer for obtaining credit

b)

Possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations

c)

A measure of the relative contribution of the creditors and shareholders or owners in the capital employed in business

d)

A home loan with an interest rate that adjusts over time based on the market

30.

what is principal?

a)

Measure of the performance and efficiency of an investment

b)

Denoting an original sum invested or lent

c)

A charge usually of money imposed by authority on a persons/property for public purposes

d)

The gain/loss of an investment over a certain period of time

31.

What is ROI(Return On Investment)?

a)

Denoting an original sum invested/lent

b)

Occurs when you sell security or investment for less than the original purchase price or its adjusted basis

c)

Cost imposed on a consumer for obtaining credit

d)

Measuring of the performance and efficiency of an investment

32.

What is Finance Charge?

a)

A cost imposed on a consumer for obtaining credit

b)

The money that a bank has obtained from its shareholders an other investors and any profit that has made and not paid out

c)

The act of computing the present value of future periodical payments

d)

Money an employer offers to an employee' IRA or other retirement plan

33.

What is Credit Risk?

a)

The amount a lender charges a borrower and is a percentage of the principal-amount loaned

b)

Uncertainty about future devotion from earnings or expected income

c)

Possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations

d)

The act of computing the present value of future periodical payments

34.

What is Cash Flow?

a)

A mortgage loan that's more than the current value of a property

b)

An individual retirement account that provides tax-free growth and withdrawals

c)

A type of installment loan, similar to a student loan or personal loan, with fixed monthly payments

d)

The increase/decrease in the amount of money a business/institution/individual has

35.

What is liability?

a)

Denoting an original sum invested or lent

b)

The obligation to deliver cash or another financial asset that can be delivered if there is an obligation

c)

Method used to calculate interest paid on both the principal and on accrued interest

d)

Measure of the performance and efficiency of an investment

36.

What is Rate of Return?

a)

The gain/loss of an investment over a certain period of time

b)

The money that a bank has obtained from its shareholders and other investors and any profit that ha made and not paid out

c)

Money an employer offers to an employee's IRA or other retirement plan

d)

The measuring of how good your credit is the quality of your credit

37.

What is a "Pre Tax" IRA?

(Select all that apply)

a)

Where you pay tax on the individual retirement deposit before you put it into your IRA.

b)

Where you do not pay tax on your individual retirement deposit until you pull funds out of the IRA.

c)

An individual retirement account that takes this money from your paycheck after your paycheck gets taxed so you pay more on the tax for your your paycheck.

d)

An individual retirement account that takes this money from your paycheck before your paycheck gets taxed so you pay less on the tax for your paycheck.

38.

What is a ROTH IRA?

(Select all that apply)

a)

Where you do not pay tax on your individual retirement deposit until you pull funds out of the IRA.

b)

An individual retirement account that takes this money from your paycheck before your paycheck gets taxed so you pay less on the tax for your paycheck.

c)

An individual retirement account that takes this money from your paycheck after your paycheck gets taxed so you pay more on the tax for your your paycheck.

d)

Where you pay tax on the individual retirement deposit before you put it into your IRA.