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






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






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






4. 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.






5. 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.






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






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






8. 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.






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






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






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






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






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






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






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






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






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






18. 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.






19. 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.






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






21. The chance or likelihood that something will happen.






22. 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.






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






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






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






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






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






28. 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.






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






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






31. The chance or likelihood that something will happen.






32. The fee paid for insurance protection.






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






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






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






36. The chance that an investment has been misrepresented.






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






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






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






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






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






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






43. Taking risks with personal finances or personal assets






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






45. 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.






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






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






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






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