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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 chance or likelihood that something will happen.






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






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






4. Taking risks with personal finances or personal assets






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






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






7. Anything subtracted from your gross income.






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






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






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






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






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






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






14. 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.






15. A person who pays rent; the legal name for a renter.






16. 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.






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






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






19. 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.






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






21. 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.






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






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






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






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






26. 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.






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






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






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






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






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






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






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






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. The original amount of money deposited or invested.






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






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






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






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






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






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






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






43. 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.






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






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






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






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






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






49. Anything subtracted from your gross income.






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