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






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






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






4. 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.






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






6. 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.






7. 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.






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






9. The fee paid for insurance protection.






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






11. The chance that an investment has been misrepresented.






12. 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.






13. Anything subtracted from your gross income.






14. 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.






15. Taking risks with personal finances or personal assets






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






17. Money earned from investments and employment.






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






19. 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.






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






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






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






23. 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.






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






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






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






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






28. The original amount of money deposited or invested.






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






30. 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.






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






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






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






34. The chance or likelihood that something will happen.






35. 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.






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






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






38. The fee paid for insurance protection.






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






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






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






42. 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.






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






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






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






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






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






48. 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.






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






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