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






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






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






4. 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.






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






6. 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.






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






8. The original amount of money deposited or invested.






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






10. 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.






11. The fee paid for insurance protection.






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






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






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






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






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






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






18. The chance or likelihood that something will happen.






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






20. 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)






21. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






35. 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.






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






37. 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.






38. 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)






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






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






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






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






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






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






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






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






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






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






49. 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.






50. 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.