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






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






3. 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.






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






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






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






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






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






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






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






11. The chance that an investment has been misrepresented.






12. The chance or likelihood that something will happen.






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






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






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






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






17. The act of giving to charitable organizations or to those in need.






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






19. 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.






20. 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.






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






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






23. 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.






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






25. 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.






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






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






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






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






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






31. 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.






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






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






34. The act of giving to charitable organizations or to those in need.






35. 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.






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






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






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






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






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






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






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






43. 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.






44. The fee paid for insurance protection.






45. 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.






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






47. 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.






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






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






50. A set of principles or beliefs that govern an individual's actions.