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






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






3. 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.






4. The chance that an investment has been misrepresented.






5. 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.






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






7. 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.






8. Anything subtracted from your gross income.






9. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






23. The chance or likelihood that something will happen.






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






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






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






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






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






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






30. The chance that an investment has been misrepresented.






31. The fee paid for insurance protection.






32. 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.






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






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






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






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. 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.






38. Taking risks with personal finances or personal assets






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






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






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






42. 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)






43. 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.






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






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






46. The fee paid for insurance protection.






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






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






49. Taking risks with personal finances or personal assets






50. 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)