Financial Vocabulary Quiz

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Congratulations - you have completed Financial Vocabulary Quiz.

You scored %%SCORE%% out of %%TOTAL%%.

Your performance has been rated as %%RATING%%

Your answers are highlighted below.

Question 1

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 1 Explanation:

debt = money owed to the lender

Question 2

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

A	net income
B	gross income
C	credit rating

Question 2 Explanation:

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

Question 3

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

A	owed
B	charged
C	afforded

Question 3 Explanation:

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

Question 4

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

A	pay
B	owe
C	afford

Question 4 Explanation:

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

Question 5

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	fee
B	tax
C	wage

Question 5 Explanation:

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

Question 6

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

A	afforded
B	charged
C	defaulted

Question 6 Explanation:

default (v.) = fail to meet financial obligations

Question 7

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

A	net income
B	pension
C	tip

Question 7 Explanation:

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

Question 8

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

A	Mortgages
B	Pensions
C	Taxes

Question 8 Explanation:

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

Question 9

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

A	wage
B	tax
C	mortgage

Question 9 Explanation:

wage (n.) = salary

Question 10

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

A	annual
B	debt
C	bankrupt

Question 10 Explanation:

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

Question 11

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

A	fee
B	wage
C	tip

Question 11 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 12

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