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






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






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






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






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






7. 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.






8. 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.






9. 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.






10. The original amount of money deposited or invested.






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






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






13. 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.






14. 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.






15. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.






16. 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.






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






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






19. The fee paid for insurance protection.






20. 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.






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






22. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.






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






24. Someone who knowingly deceives you for their own personal gain.






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






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






27. Anything subtracted from your gross income.






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






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






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






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






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






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






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






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






36. Taking risks with personal finances or personal assets






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






38. 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)






39. 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.






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






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






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






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






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






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






46. The chance that an investment has been misrepresented.






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






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






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






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