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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 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.






3. 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.






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






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






6. 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.






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






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






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






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






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






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






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






14. Taking risks with personal finances or personal assets






15. The chance or likelihood that something will happen.






16. Money earned from investments and employment.






17. 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.






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






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






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






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






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






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






25. The chance or likelihood that something will happen.






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






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






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






29. Anything subtracted from your gross income.






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






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






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






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






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






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






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






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






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






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






40. Taking risks with personal finances or personal assets






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






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






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






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






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. The chance that an investment has been misrepresented.






47. 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)






48. 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.






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






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