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Financial Terms Quizs

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Interest

a)

Money you are paid for lending money or the amount of money that is added to the money you borrowed.

b)

A fee charged for using a credit card.

c)

The total amount of money you owe after borrowing.

d)

A type of investment that guarantees returns.

2.

Automatic Teller Machine (ATM)

a)

A device used to withdraw cash from a bank account.

b)

A computer terminal used to conduct business with a financial institution or purchase items like postage stamps or transportation tickets.

c)

A machine that only dispenses cash without any other functions.

d)

A type of vending machine for snacks and drinks.

3.

Bond

a)

A type of stock that represents ownership in a company.

b)

A certificate representing the purchaser’s agreement to lend a business or government money on the promise the debt will be paid—with interest—at a specific time.

c)

A legal document that outlines the terms of a loan between two parties.

d)

A financial instrument that guarantees a fixed return on investment.

4.

Assets

a)

What a person owns—cash, stocks, bonds, real estate, personal possessions, etc.

b)

A type of liability that represents what a person owes.

c)

A financial statement that summarizes a person's income and expenses.

d)

A method of investing in the stock market.

5.

Debt

a)

Something owed; usually measured in dollars.

b)

A type of investment that generates income.

c)

A financial term for profit made from sales.

d)

A legal document for borrowing money.

6.

Bankruptcy

a)

The state of being legally released from the obligation to repay all or some debt in exchange for the forced loss of certain assets; remains on a consumer’s credit record for 10 years.

b)

A financial status where an individual has more assets than liabilities and is able to pay off debts.

c)

A legal process that allows individuals to consolidate their debts into a single payment plan without losing any assets.

d)

A situation where a person is unable to pay their debts but does not seek legal protection.

7.

Appreciation

a)

A decrease in value or price.

b)

A rise in value or price.

c)

A stable value or price.

d)

A temporary increase in value.

8.

Emergency Fund

a)

Money set aside specifically for an emergency such as a major accident, or loss of a job, usually recommended at least three months’ salary.

b)

A savings account used for everyday expenses and bills.

c)

An investment account for long-term growth and retirement savings.

d)

A fund used to pay for luxury items and vacations.

9.

Inflation

a)

A decrease in the price of goods over time.

b)

A general increase in the price of goods over time.

c)

A measure of economic growth.

d)

A type of government tax policy.

10.

Loan

a)

Something that is given as a gift without expectation of return.

b)

Something that is lent; allowed to be issued for a period of time. If the loan is money, it is often repaid with interest.

c)

A type of investment that guarantees a return.

d)

A financial term for a type of savings account.

11.

Investment

a)

Putting money into assets (like stocks, bonds, mutual funds, etc.) to help you reach your financial goals.

b)

Saving money in a bank account with no interest.

c)

Buying a car to use for personal transportation.

d)

Donating money to charity without expecting anything in return.

12.

Collection Agency

a)

A business that specializes in obtaining payments from debtors who have defaulted on their loans.

b)

A company that provides financial advice to individuals and businesses.

c)

An organization that offers loans to consumers with low credit scores.

d)

A service that helps people manage their personal budgets.

13.

Bank

a)

A state or federally chartered for-profit financial institution that offers commercial and consumer loans and other financial services.

b)

A non-profit organization that provides financial assistance to individuals in need.

c)

A government agency that regulates the stock market and financial institutions.

d)

A private company that specializes in investment banking and mergers.

14.

Stock

a)

An investment in a share of a company that is sold to the public.

b)

A type of bond issued by the government.

c)

A savings account with a fixed interest rate.

d)

A loan taken out to purchase real estate.

15.

Credit Union

a)

A state or federally owned not-for-profit financial cooperative that provides financial services to its members-owners, who have met specific employment, residence, or other eligibility requirements.

b)

A for-profit financial institution that offers loans and credit cards to the general public.

c)

A government agency that regulates financial institutions and ensures consumer protection.

d)

A private bank that requires a minimum balance to open an account.

16.

Deposit

a)

A sum of money put into a bank account.

b)

A type of loan given by a bank.

c)

A fee charged for account maintenance.

d)

A withdrawal of funds from an account.

17.

Budget

a)

A financial plan that outlines expected income and expenses over a specific period.

b)

A record of actual income and expenses without projections.

c)

A document that only tracks expenses without considering income.

d)

A spending plan; a record of projected and actual income and expenses over a period of time.

18.

Retirement Plan

a)

A plan provided by an employer or a self-employed individual for retirement.

b)

A savings account for short-term goals.

c)

An investment strategy for young professionals.

d)

A health insurance policy for seniors.

19.

Mortgage

a)

A short-term loan for personal expenses.

b)

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

c)

A type of insurance for property damage.

d)

A government grant for home buyers.

20.

Late Fee

a)

Charge levied against a client for not paying a bill by its due date.

b)

A discount offered for early payment of a bill.

c)

A fee charged for exceeding a credit limit.

d)

A penalty for canceling a service before the contract ends.