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






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






3. 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)






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






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






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






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






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






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






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






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






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






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






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






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






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






17. Anything subtracted from your gross income.






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






19. 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.






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






21. The chance that an investment has been misrepresented.






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






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






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






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






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






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






28. 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.






29. 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.






30. 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.






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






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






33. 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.






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






35. 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.






36. The chance that an investment has been misrepresented.






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






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






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






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






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






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






43. The chance or likelihood that something will happen.






44. The fee paid for insurance protection.






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






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






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






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






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






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