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






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






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






4. 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.






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






6. Money earned from investments and employment.






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






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






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






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






11. The original amount of money deposited or invested.






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






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






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






15. 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.






16. 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.






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






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






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






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






21. The chance or likelihood that something will happen.






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






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






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






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






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






27. 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.






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






29. 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.






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






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






32. Anything subtracted from your gross income.






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






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






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






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






37. 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.






38. 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.






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






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






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






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






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






45. 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.






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






47. 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.






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






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






50. 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.