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






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






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






4. 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.






5. 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.






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






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






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






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






11. 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)






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






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






14. Taking risks with personal finances or personal assets






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






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






17. 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.






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






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






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






22. 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.






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






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






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






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






27. 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.






28. 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.






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






30. The chance that an investment has been misrepresented.






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






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






33. 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.






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






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






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






37. 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.






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






39. The chance or likelihood that something will happen.






40. 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.






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






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






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






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






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






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






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






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






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






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







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