What term signifies being lacking in money or penniless?

The term that best signifies being lacking in money or penniless among the given choices is "impecunious." This word specifically describes someone who has little or no money, making it a precise synonym for being financially impoverished. While other terms like "indigent," "destitute," and "financially challenged" also relate to a lack of financial resources, they may carry slightly different connotations or contexts.

For instance, "indigent" often refers to extreme poverty and may imply a lack of basic necessities. "Destitute" emphasizes a state of having nothing at all, not just in terms of money but also regarding essential needs for survival. "Financially challenged" can imply a temporary situation that someone may be able to overcome with time or effort, which doesn't strictly equate to being penniless.

Impecunious, however, directly conveys a state of being without financial means in a straightforward manner, which aligns perfectly with the definition of being lacking in money. This specificity makes it the most appropriate choice in this context.