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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. Money earned from investments and employment.






2. 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.






3. The chance that an investment has been misrepresented.






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






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






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






7. 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.






8. 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.






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






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






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






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






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






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






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






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






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






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






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






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






21. The original amount of money deposited or invested.






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






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






24. The original amount of money deposited or invested.






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






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






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






28. The fee paid for insurance protection.






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






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






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






32. 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.






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






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






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






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






37. 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.






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






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






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






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






42. 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.






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






45. 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.






46. Money earned from investments and employment.






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






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






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






50. 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.