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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. How fast money in savings account or investment grows.






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






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






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






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






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






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






9. 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.






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






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






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






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






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






15. 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.






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






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






18. Money earned from investments and employment.






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






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






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






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






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






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






25. Money earned from investments and employment.






26. 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.






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






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






29. The chance or likelihood that something will happen.






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






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






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






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






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






35. The chance that an investment has been misrepresented.






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






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






39. Taking risks with personal finances or personal assets






40. 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.






41. 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.






42. 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.






43. 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.






44. The original amount of money deposited or invested.






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






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






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






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






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






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