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






2. 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.






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






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






5. 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.






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






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






8. 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.






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






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






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






12. 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.






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






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






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






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






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






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






19. 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.






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






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






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






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






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






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






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






27. 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.






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






29. Anything subtracted from your gross income.






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






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






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






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






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






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






36. 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.






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






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






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






40. 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.






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






42. A tax that takes a larger percentage of income from people in higher-income groups than from people in lower-income ones; (Example - U.S. federal income tax)






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






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






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






46. The fee paid for insurance protection.






47. 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.






48. 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.






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






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







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