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






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






3. The fee paid for insurance protection.






4. The chance or likelihood that something will happen.






5. 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.






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






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






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






9. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.






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






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






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






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






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






15. Taking risks with personal finances or personal assets






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






17. 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.






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






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






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






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






22. 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.






23. 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)






24. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.






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






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






27. The chance or likelihood that something will happen.






28. 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.






29. 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.






30. 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.






31. The chance that an investment has been misrepresented.






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






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






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






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






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






37. The chance that an investment has been misrepresented.






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






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






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






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






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






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






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






45. 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.






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






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






48. 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.






49. The original amount of money deposited or invested.






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