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






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






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






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






5. 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.






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






7. The chance that an investment has been misrepresented.






8. The chance that an investment has been misrepresented.






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






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






11. 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.






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






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






14. 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.






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






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






17. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.






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






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






20. 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.






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






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






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






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






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






26. The fee paid for insurance protection.






27. The fee paid for insurance protection.






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






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






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






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






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






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






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






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






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






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






38. 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.






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






40. The chance or likelihood that something will happen.






41. Money earned from investments and employment.






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






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






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






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






46. Taking risks with personal finances or personal assets






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






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






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