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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 person who owns property and rents it to another.






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






3. Taking risks with personal finances or personal assets






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






5. The chance that an investment has been misrepresented.






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






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






8. The fee paid for insurance protection.






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






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






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






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






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






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






15. 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)






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






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






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






19. The original amount of money deposited or invested.






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






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






22. 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.






23. 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.






24. 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.






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






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






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






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






29. 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.






30. 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.






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






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






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






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






35. The chance that an investment has been misrepresented.






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






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






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






40. Money earned from investments and employment.






41. Taking risks with personal finances or personal assets






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






43. 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.






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






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






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






47. 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.






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






49. 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.






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