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






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






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






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






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






6. 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.






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






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






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






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






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






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






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






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






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






16. Anything subtracted from your gross income.






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






18. The chance or likelihood that something will happen.






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






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






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






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






23. 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.






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






25. Taking risks with personal finances or personal assets






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






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






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






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






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






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






32. 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.






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






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






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






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






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






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






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






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






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






42. 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.






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






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






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






46. The chance that an investment has been misrepresented.






47. 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.






48. The original amount of money deposited or invested.






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






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