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






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






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






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






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






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






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






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






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






10. 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.






11. The chance that an investment has been misrepresented.






12. Taking risks with personal finances or personal assets






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






14. A non-cash contribution to a charitable organization which can be given a cash value.






15. 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.






16. 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.






17. 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.






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






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






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






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






22. The original amount of money deposited or invested.






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






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






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






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






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






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






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






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






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






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






33. The fee paid for insurance protection.






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






35. 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.






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






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






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






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






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






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






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






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






44. Anything subtracted from your gross income.






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






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






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






48. The chance or likelihood that something will happen.






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






50. 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.