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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 person who owns property and rents it to another.






2. 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.






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






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






5. 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.






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






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






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






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






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






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






12. The chance or likelihood that something will happen.






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






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






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






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






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






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






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






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






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






22. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.






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






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






25. A person who owns property and rents it to another.






26. The fee paid for insurance protection.






27. 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.






28. The chance that an investment has been misrepresented.






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






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






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






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






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






35. The fee paid for insurance protection.






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






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






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






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






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






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






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






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






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






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






47. 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)






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






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






50. Money earned from investments and employment.