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






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






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






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






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






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






7. Taking risks with personal finances or personal assets






8. A measure of creditworthiness based on an analysis of the consumer's financial history & often computed as a numerical score & using the FICO or other scoring systems to analyze the consumer's credit.






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






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






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






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






13. 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.






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






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






16. Taking risks with personal finances or personal assets






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






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






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






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






22. 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.






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






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






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






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






27. 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.






28. 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)






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






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






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






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






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






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






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






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






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






38. 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.






39. Money earned from investments and employment.






40. The original amount of money deposited or invested.






41. 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.






42. Money earned from investments and employment.






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






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






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






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






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






48. 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.






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






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