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






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






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. Payment for the use of someone else's money






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






6. 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.






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






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






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






10. 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.






11. The chance that an investment has been misrepresented.






12. The original amount of money deposited or invested.






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






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






15. 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.






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






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






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






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






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






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






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






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






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






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






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






27. Money earned from investments and employment.






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






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






30. Taking risks with personal finances or personal assets






31. 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.






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






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






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 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.






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






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






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






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






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






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






42. 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.






43. Expenditures that change from week to week or month to month-- food & clothing & recreation & 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. 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. The percentage of the costs of medical services paid by the patient.






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






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






49. The fee paid for insurance protection.






50. The original amount of money deposited or invested.