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






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






3. 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.






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






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






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






7. 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)






8. 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.






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






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






11. Money earned from investments and employment.






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






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






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






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






16. Anything subtracted from your gross income.






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






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






19. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.






20. The original amount of money deposited or invested.






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






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






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






24. 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.






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






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






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






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






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. The chance or likelihood that something will happen.






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






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






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






34. 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.






35. 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.






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






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






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






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






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






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






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






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






45. 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.






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






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






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






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






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