Financial Vocabulary Quiz

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Question 1

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.

A	wage
B	tax
C	fee

Question 1 Explanation:

fee (n.) = a payment required for some services

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

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

A	net income
B	tip
C	pension

Question 3 Explanation:

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

Question 4

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

A	owed
B	affordable
C	annual

Question 4 Explanation:

annual (adj.) = once per year.

Question 5

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

A	net income
B	tax
C	credit rating

Question 5 Explanation:

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

Question 6

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

A	credit rating
B	gross income
C	net income

Question 6 Explanation:

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

Question 7

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

A	tax
B	mortgage
C	wage

Question 7 Explanation:

wage (n.) = salary

Question 8

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

A	owe
B	afford
C	pay

Question 8 Explanation:

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

Question 9

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

A	defaulted
B	charged
C	afforded

Question 9 Explanation:

default (v.) = fail to meet financial obligations

Question 10

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

A	gross income
B	wage
C	debt

Question 10 Explanation:

debt = money owed to the lender

Question 11

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

A	Pensions
B	Mortgages
C	Taxes

Question 11 Explanation:

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

Question 12

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

A	bankrupt
B	annual
C	debt

Question 12 Explanation:

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

Question 13

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

A	charged
B	owed
C	afforded

Question 13 Explanation:

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

Question 14

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

A	tip
B	wage
C	fee

Question 14 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 15

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