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






2. 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.






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






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






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






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






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






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






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






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






11. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.






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






13. Anything subtracted from your gross income.






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






15. 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.






16. The chance or likelihood that something will happen.






17. 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)






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






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






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






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






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






23. The chance or likelihood that something will happen.






24. 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.






25. 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.






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






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






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






29. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.






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






31. 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.






32. 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.






33. 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.






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






35. The fee paid for insurance protection.






36. 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.






37. The original amount of money deposited or invested.






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






39. 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.






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






41. Money earned from investments and employment.






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






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






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






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






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






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






48. 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.






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






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