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






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






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






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






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






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






7. 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.






8. The chance that an investment has been misrepresented.






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






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






11. Money earned from investments and employment.






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






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






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






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






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






17. 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.






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. Money earned from investments and employment.






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






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






22. 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.






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






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






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






26. Taking risks with personal finances or personal assets






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






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






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






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






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 chance or likelihood that something will happen.






33. The fee paid for insurance protection.






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






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






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






37. 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.






38. The original amount of money deposited or invested.






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






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






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






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






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






44. 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.






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






46. Anything subtracted from your gross income.






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






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






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






50. The original amount of money deposited or invested.