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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. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends






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






3. The chance that an investment has been misrepresented.






4. A legal organization providing services or activities without commercial or monetary gain.






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






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






7. A retirement plan that allows employees in private companies to make contributions of pre-tax dollars to a company pool that is then invested in stocks & bonds & or money markets.






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






9. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.






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






11. A measure of creditworthiness based on an analysis of the consumer's financial history & often computed as a numerical score & using the FICO or other scoring systems to analyze the consumer's credit.






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






13. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.






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






15. 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.






16. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.






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






18. A federal system of old-age & survivors' & disability & and hospital care (Medicare) insurance which requires employers to withhold wages from employees' paychecks and deposit that money in designated accounts.






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






20. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.






21. A federal system of old-age & survivors' & disability & and hospital care (Medicare) insurance which requires employers to withhold wages from employees' paychecks and deposit that money in designated accounts.






22. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.






23. 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.






24. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.






25. A retirement plan that allows employees in private companies to make contributions of pre-tax dollars to a company pool that is then invested in stocks & bonds & or money markets.






26. An official record of a borrower's credit history & including such information as the amount and type of credit used & outstanding balances & and any delinquencies & bankruptcies & or tax liens.






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






28. Payment for the use of someone else's money






29. Anything subtracted from your gross income.






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






31. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.






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






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






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






35. A plastic card used to deduct a purchase amount directly from your checking account.






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






37. 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)






38. The chance that an investment has been misrepresented.






39. Taking risks with personal finances or personal assets






40. 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.






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






42. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.






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






44. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.






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






46. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends






47. Payment for the use of someone else's money






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






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






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