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






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






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






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






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






6. The fee paid for insurance protection.






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






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






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






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






11. Anything subtracted from your gross income.






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






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






14. 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.






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






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






17. 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.






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






19. 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)






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






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






22. The chance or likelihood that something will happen.






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






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






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






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






27. 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.






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






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






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






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






32. Anything subtracted from your gross income.






33. 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.






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






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






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






37. A long-term loan to buy real estate including land and the structures on it.






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






39. The chance that an investment has been misrepresented.






40. 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.






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






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






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






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






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






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






47. 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.






48. 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.






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






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