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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. Anything subtracted from your gross income.






2. 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.






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






4. 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.






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






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






7. The original amount of money deposited or invested.






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






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. Money earned from investments and employment.






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






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






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






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






15. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






31. 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.






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






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






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






35. Money earned from investments and employment.






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






37. 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.






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






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






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






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






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






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






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






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






46. 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.






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






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






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






50. Taking risks with personal finances or personal assets