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






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






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






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






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






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






7. 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)






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






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






10. The original amount of money deposited or invested.






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






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






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






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






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






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






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






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






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






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






21. The fee paid for insurance protection.






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






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






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






25. 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.






26. 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.






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






28. Anything subtracted from your gross income.






29. 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.






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






31. 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.






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






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






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






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






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






37. 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.






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






39. 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.






40. 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.






41. Taking risks with personal finances or personal assets






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






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






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






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






46. Taking risks with personal finances or personal assets






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






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






49. 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.






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







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