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






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






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






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






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






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






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






8. The fee paid for insurance protection.






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






10. Money earned from investments and employment.






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






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






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






14. 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.






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






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






17. 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)






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






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






20. 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.






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






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






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






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






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






26. 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.






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






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






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






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






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






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






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






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






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






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






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






38. 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.






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






40. 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.






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






42. The chance or likelihood that something will happen.






43. 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)






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






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






46. The original amount of money deposited or invested.






47. 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.






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






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






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