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






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






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






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






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






6. 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.






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






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






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






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






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






12. The chance that an investment has been misrepresented.






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






14. 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.






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






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






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






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






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






20. Money earned from investments and employment.






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






22. 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.






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






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






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






26. The original amount of money deposited or invested.






27. The original amount of money deposited or invested.






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






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






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






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






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






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






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






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






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






37. 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.






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






39. 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.






40. 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.






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






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






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






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






45. Taking risks with personal finances or personal assets






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






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






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






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






50. 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.







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