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






2. Anything subtracted from your gross income.






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






4. The chance or likelihood that something will happen.






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






6. Taking risks with personal finances or personal assets






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






8. 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.






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






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






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






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






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






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






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






16. Money earned from investments and employment.






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






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






19. 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.






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






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






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






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






24. 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.






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






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






27. 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.






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






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






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






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






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






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






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






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






36. The chance that an investment has been misrepresented.






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






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






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






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






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






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






43. 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.






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






45. The chance or likelihood that something will happen.






46. 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)






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






48. The original amount of money deposited or invested.






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






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