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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. How fast money in savings account or investment grows.






3. 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.






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






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






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






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






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






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






10. The original amount of money deposited or invested.






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






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






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






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






15. 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.






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






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






18. 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.






19. Taking risks with personal finances or personal assets






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






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






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






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






24. 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.






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






26. The original amount of money deposited or invested.






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






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






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






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






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. Money earned from investments and employment.






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






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






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






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






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






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






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






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






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






42. 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.






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






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






45. 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)






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






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






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






49. 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.






50. 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.