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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 percentage of the costs of medical services paid by the patient.






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






3. How fast money in savings account or investment grows.






4. Taking risks with personal finances or personal assets






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






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






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






8. 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.






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






10. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.






11. 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.






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






13. 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.






14. The chance that an investment has been misrepresented.






15. The fee paid for insurance protection.






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






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






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






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






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






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






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






23. 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.






24. Anything subtracted from your gross income.






25. 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.






26. 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.






27. 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.






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






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






30. Someone who rummages through your trash looking for bills or other paper with your personal information on it.






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






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






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






34. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.






35. The original amount of money deposited or invested.






36. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.






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






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






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






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






41. The chance or likelihood that something will happen.






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






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






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






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






46. 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.






47. 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)






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






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






50. The chance that an investment has been misrepresented.