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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. Money earned from investments and employment.






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






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






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






5. Anything subtracted from your gross income.






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






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






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






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






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






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






12. 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.






13. Taking risks with personal finances or personal assets






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






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






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






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






18. 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.






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






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






22. 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.






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






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






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






26. 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.






27. 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.






28. The chance or likelihood that something will happen.






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






30. The fee paid for insurance protection.






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






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






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






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






35. The original amount of money deposited or invested.






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






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






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






39. 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.






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






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






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






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






44. 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.






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






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






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






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






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