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






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






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






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






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






6. 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.






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






8. Money earned from investments and employment.






9. The chance that an investment has been misrepresented.






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






11. The fee paid for insurance protection.






12. The chance or likelihood that something will happen.






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






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






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






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






17. 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.






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






19. The chance or likelihood that something will happen.






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






21. 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.






22. Anything subtracted from your gross income.






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






24. Money earned from investments and employment.






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






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






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






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






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






30. The original amount of money deposited or invested.






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






32. Anything subtracted from your gross income.






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






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






35. 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.






36. 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)






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






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






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






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






41. Taking risks with personal finances or personal assets






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






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






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






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






46. 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.






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






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






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






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