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






2. The chance or likelihood that something will happen.






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






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






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






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






7. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






21. The chance or likelihood that something will happen.






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 chance that an investment has been misrepresented.






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






25. 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.






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






27. The chance that an investment has been misrepresented.






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






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






30. 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)






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






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






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






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






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






36. 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.






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






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






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






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






41. 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.






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






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






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






45. 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.






46. Money earned from investments and employment.






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






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






49. Taking risks with personal finances or personal assets






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