Financial Vocabulary Quiz

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Question 1

My grandfather receives a _______________ every month because he served in the military for 30 years.

A	pension
B	net income
C	tip

Question 1 Explanation:

pension (n.) = a fixed salary paid to retired people, helping them survive in their old age without having to work.

Question 2

I'd like to buy a house, but I can't ______________ it on my teacher's salary.

A	tip
B	default
C	afford

Question 2 Explanation:

afford (v.) = to have enough money to do something or to buy something.

Question 3

I _________ my friend $500. I borrowed the money last month for an emergency.

A	pay
B	afford
C	owe

Question 3 Explanation:

owe (v.) = to have an obligation to pay back money borrowed.

Question 4

In restaurants in New York City, it's common to leave a 20% _____________ for good service.

A	wage
B	fee
C	tip

Question 4 Explanation:

tip (n.) = extra money given as thanks for a service. "Tip" can be a verb or a noun ("leave a tip"). In the U.S., it's common to tip waiters/waitresses, taxi drivers, hairstylists, food delivery people, hotel bellhops (the person who carries your bags), hotel room service, and furniture delivery.

Question 5

The __________ of the average American family has risen thanks to the widespread use of credit cards rather than cash to make purchases.

A	wage
B	debt
C	gross income

Question 5 Explanation:

debt = money owed to the lender

Question 6

Most countries have laws establishing a minimum ______________ for low-level jobs.

A	mortgage
B	wage
C	tax

Question 6 Explanation:

wage (n.) = salary

Question 7

When he _____________ on his payments, the bank took his car.

A	defaulted
B	afforded
C	charged

Question 7 Explanation:

default (v.) = fail to meet financial obligations

Question 8

Our _______________ is $36,000/year, but after taxes we only take home about $24,000.

A	gross income
B	net income
C	credit rating

Question 8 Explanation:

Gross income (n.) = salary before taxes. Net income (n.) = salary after the taxes and other contributions to the government are removed.

Question 9

Paying the balance on your card every month helps you get a good _________________.

A	credit rating
B	tax
C	net income

Question 9 Explanation:

credit rating = the evaluation of a person's credit risk based on their history of paying off debts

Question 10

____________ help pay for public roads, schools, and hospitals.

A	Pensions
B	Taxes
C	Mortgages

Question 10 Explanation:

taxes (n.) = money collected by the government for the maintenance of public services. Taxes are applied to both individuals and companies.

Question 11

The company's managers receive an ______________ bonus equal to 50% of their normal monthly salary.

A	owed
B	affordable
C	annual

Question 11 Explanation:

annual (adj.) = once per year.

Question 12

That dentist is so expensive - he _____________ me $400 for a simple cleaning!

A	owed
B	charged
C	afforded

Question 12 Explanation:

charge (v.) = ask for payment for a product or service.

Question 13

After decades of financial struggles, the company finally went _______________.

A	bankrupt
B	debt
C	annual

Question 13 Explanation:

bankrupt (adj.) = unable to meet financial obligations. Both people and companies can "go bankrupt."

Question 14

It took us 30 years to pay off the ___________ on our house.

A	fee
B	pension
C	mortgage

Question 14 Explanation:

mortgage = money borrowed for buying a property

Question 15

Applicants to many colleges and universities in the United States have to pay an application ____________. This helps pay for the administrative processing of the documents.