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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






16. 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.






17. The fee paid for insurance protection.






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






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






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






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






22. The original amount of money deposited or invested.






23. 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.






24. 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.






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






26. 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.






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






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






29. The chance or likelihood that something will happen.






30. 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.






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






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






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






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






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






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






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






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






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






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






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






44. Taking risks with personal finances or personal assets






45. The chance that an investment has been misrepresented.






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






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






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






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