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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 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.






2. The chance that an investment has been misrepresented.






3. Anything subtracted from your gross income.






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






5. Taking risks with personal finances or personal assets






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






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






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






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






10. Anything subtracted from your gross income.






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






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






13. 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.






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






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






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






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






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






19. 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.






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






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






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






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






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






25. 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.






26. 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.






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






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






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






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






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






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






34. 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)






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






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






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






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






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






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






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






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






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






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






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






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






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






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






50. The fee paid for insurance protection.