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






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






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






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






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






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






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






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






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






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






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






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






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






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






15. 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.






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






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






18. The chance that an investment has been misrepresented.






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






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






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






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






23. 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)






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






25. 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.






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






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






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






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






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






31. The chance or likelihood that something will happen.






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






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






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






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






36. 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.






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






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






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






40. 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.






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






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






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






44. 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.






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






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






47. 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.






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






49. The chance that an investment has been misrepresented.






50. 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.