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






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






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






4. 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.






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






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






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






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






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






10. 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.






11. 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.






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






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






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






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






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






17. 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.






18. 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.






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






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






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






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






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






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






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






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






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






28. Money earned from investments and employment.






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






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






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






32. 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.






33. 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)






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






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






36. 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.






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






38. 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.






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






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






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






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






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






44. 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.






45. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.






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






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






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






49. 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.






50. Taking risks with personal finances or personal assets