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






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






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






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






6. The fee paid for insurance protection.






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






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






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






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






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






13. The original amount of money deposited or invested.






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






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






16. 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.






17. 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.






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






19. 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)






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






36. 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.






37. 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.






38. 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.






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






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






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






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






43. Money earned from investments and employment.






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






45. The chance or likelihood that something will happen.






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






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






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






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






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