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Financial Literacy Vocab

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. The length of time & in years that it takes an amount of money saved to double when it receives compound interest. This length of time can be found by dividing the interest rate into 72.






2. A purposeful course of action or purpose in life that generally provides income






3. A contract between an individual and an insurance company where the individual makes a payments that are invested by the company and repaid to the individual at a later date & generally during retirement.






4. Using a person's name or personal information without the person's permission to steal money or get other benefit.






5. A person or company to whom money is owed.






6. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.






7. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.






8. The chance or likelihood that something will happen.






9. The original amount of money deposited or invested.






10. A set of principles or beliefs that govern an individual's actions.






11. The fee paid for insurance protection.






12. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).






13. A company that makes loans for the purchase of a house or other real estate.






14. The act of giving to charitable organizations or to those in need.






15. An amount of money that the member or insured pays directly to a provider at the time services are rendered.






16. A non-cash contribution to a charitable organization which can be given a cash value.






17. Costs paid when buying a house or real estate.






18. A person who owns property and rents it to another.






19. A written contract specifying the terms for the use of an asset and the legal responsibilities of both parties to the agreement & such as a property owner and tenant.






20. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.






21. A plan for managing money & dividing up expected income and expenses among spending and saving options based on personal goals during a given time period.






22. Money earned from investments and employment.






23. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.






24. An agreement to provide goods & services & or money in exchange for future payments with interest by a specific date or according to a specific schedule.






25. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)






26. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.






27. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).






28. A contract between an individual and an insurance company where the individual makes a payments that are invested by the company and repaid to the individual at a later date & generally during retirement.






29. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.






30. A measure of the uncertainty of an investment's rate of return; possible losses.






31. A bank or credit union account that allows withdrawals by writing a check.






32. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).






33. A person who owns property and rents it to another.






34. Taking risks with personal finances or personal assets






35. The value of the second-best alternative that a person gives up when making one choice instead of another.






36. A tax that takes a larger percentage of income from people in higher-income groups than from people in lower-income ones; (Example - U.S. federal income tax)






37. A person who pays rent; the legal name for a renter.






38. The original amount of money deposited or invested.






39. A purposeful course of action or purpose in life that generally provides income






40. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)






41. Wages or salary before deductions for taxes and other purposes.






42. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.






43. An establishment that collects and distributes credit history info. of individuals & business.






44. Money earned from investments and employment.






45. An establishment that collects and distributes credit history info. of individuals & business.






46. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)






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






48. A plan for managing money & dividing up expected income and expenses among spending and saving options based on personal goals during a given time period.






49. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.






50. Taking risks with personal finances or personal assets