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






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






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






4. 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.






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






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






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






9. Anything subtracted from your gross income.






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






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






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






13. 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.






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






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






16. 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.






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






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






19. The original amount of money deposited or invested.






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






21. The chance that an investment has been misrepresented.






22. The chance or likelihood that something will happen.






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






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






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






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






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






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






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






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






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






32. Money earned from investments and employment.






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






34. 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.






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






36. 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)






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






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






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






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






41. The fee paid for insurance protection.






42. 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.






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






44. 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.






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






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






48. 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.






49. How fast money in savings account or investment grows.






50. Taking risks with personal finances or personal assets