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






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






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






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






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






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






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






8. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.






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






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






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






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






13. 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)






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






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






16. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.






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






18. 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.






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






20. 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.






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






22. 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.






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






24. The original amount of money deposited or invested.






25. 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.






26. 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.






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






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






29. 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.






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






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






32. 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.






33. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






50. The chance that an investment has been misrepresented.