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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. 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.






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






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






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






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






7. Anything subtracted from your gross income.






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






9. The chance or likelihood that something will happen.






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






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






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






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






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






15. Taking risks with personal finances or personal assets






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






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






19. Anything subtracted from your gross income.






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






21. The original amount of money deposited or invested.






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






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






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






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






26. 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)






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






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






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. Money earned from investments and employment.






31. 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)






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






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






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






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






36. 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.






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. 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.






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






40. The chance or likelihood that something will happen.






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






42. Taking risks with personal finances or personal assets






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






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






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






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






47. 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.






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






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






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