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






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






3. The fee paid for insurance protection.






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






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






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






7. 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.






8. The fee paid for insurance protection.






9. 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.






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






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






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






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






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






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






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






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






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






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






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






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






22. 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.






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






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






25. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.






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






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






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. 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.






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






31. 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.






32. The original amount of money deposited or invested.






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






34. Taking risks with personal finances or personal assets






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






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






37. Anything subtracted from your gross income.






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






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






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






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






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






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






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






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






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






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






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






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