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






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






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






5. 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.






6. The fee paid for insurance protection.






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






8. 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.






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






10. 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.






11. Anything subtracted from your gross income.






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






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






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






15. 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.






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






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






18. The fee paid for insurance protection.






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






20. The chance that an investment has been misrepresented.






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






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






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






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






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






26. 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.






27. Taking risks with personal finances or personal assets






28. 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.






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






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






31. The chance or likelihood that something will happen.






32. 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.






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






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






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






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






37. 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.






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






39. 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.






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






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






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






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






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






45. 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.






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






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






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






49. The chance that an investment has been misrepresented.






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