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






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






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






4. 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.






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






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






7. The original amount of money deposited or invested.






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






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






10. Anything subtracted from your gross income.






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






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






13. The chance or likelihood that something will happen.






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






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






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






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






18. Money earned from investments and employment.






19. 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.






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






21. 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.






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






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






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






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






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






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






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






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






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






32. 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.






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






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






35. 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.






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






37. The fee paid for insurance protection.






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






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






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






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






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






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






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






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






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






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






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






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






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