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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 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)






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






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






4. Anything subtracted from your gross income.






5. 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.






6. The fee paid for insurance protection.






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






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






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






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






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






12. 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.






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






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






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






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






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






18. The chance or likelihood that something will happen.






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






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






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






23. 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.






24. 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.






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






26. 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)






27. The original amount of money deposited or invested.






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






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






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






31. 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.






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






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






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






35. Money earned from investments and employment.






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






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






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






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






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






42. 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.






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






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






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






46. 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.






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






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






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






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