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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 chance or likelihood that something will happen.






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






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






4. 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.






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






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






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






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






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






10. 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.






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






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






13. 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.






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






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






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






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






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






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






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






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






22. 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.






23. 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.






24. 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.






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






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






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






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






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






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






31. The original amount of money deposited or invested.






32. The chance or likelihood that something will happen.






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






34. 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.






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






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






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






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






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






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






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






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






43. 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.






44. 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.






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






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






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






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






49. The fee paid for insurance protection.






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