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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 person or company to whom money is owed.






2. Anything subtracted from your gross income.






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






4. 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.






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






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






7. 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.






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






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






10. 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.






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






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






13. Taking risks with personal finances or personal assets






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






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






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






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






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






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






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






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






22. 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.






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






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






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






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






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






28. 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.






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






30. The chance or likelihood that something will happen.






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






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






33. Money earned from investments and employment.






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






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






36. 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.






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






38. 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.






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






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






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






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






43. The chance or likelihood that something will happen.






44. The fee paid for insurance protection.






45. The original amount of money deposited or invested.






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






47. 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.






48. 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)






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






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