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






2. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.






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






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






5. 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.






6. Money earned from investments and employment.






7. The fee paid for insurance protection.






8. 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.






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






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






11. How fast money in savings account or investment grows.






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






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






14. The chance that an investment has been misrepresented.






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






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






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






18. 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.






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






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






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






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






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






24. 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)






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






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






27. The chance or likelihood that something will happen.






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






29. Money earned from investments and employment.






30. The chance or likelihood that something will happen.






31. The fee paid for insurance protection.






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






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






34. 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.






35. How fast money in savings account or investment grows.






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






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






38. 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.






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






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






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






42. Taking risks with personal finances or personal assets






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






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






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






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






47. 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.






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






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






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