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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. The chance or likelihood that something will happen.






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






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






5. 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.






6. 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.






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






8. 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.






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






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






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






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






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






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






15. Anything subtracted from your gross income.






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






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






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






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






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






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






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






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






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






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






26. 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.






27. 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.






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






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






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






32. The original amount of money deposited or invested.






33. 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.






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






35. 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.






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






37. Taking risks with personal finances or personal assets






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






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






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






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






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






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






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






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






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






47. The chance or likelihood that something will happen.






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






49. The fee paid for insurance protection.






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







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