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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 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.






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






3. 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.






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






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






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






7. The chance or likelihood that something will happen.






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 fee paid for insurance protection.






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






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






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






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






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






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






16. 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.






17. Taking risks with personal finances or personal assets






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






19. 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.






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






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






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






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






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






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






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






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






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






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






30. 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.






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






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






33. 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.






34. The fee paid for insurance protection.






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






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






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






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






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






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






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






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






43. 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.






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






45. Taking risks with personal finances or personal assets






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






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






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






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






50. 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.