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






2. Money earned from investments and employment.






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






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






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






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






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 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.






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






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






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






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






13. 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)






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






15. 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.






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






17. The original amount of money deposited or invested.






18. 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)






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






20. The chance that an investment has been misrepresented.






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






22. 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.






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






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






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






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






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






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






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






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






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






32. Money earned from investments and employment.






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






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






35. 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.






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






37. 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.






38. The fee paid for insurance protection.






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






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






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






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






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






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






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






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






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






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






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






50. The original amount of money deposited or invested.