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






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






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






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






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






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






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






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






9. 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.






10. 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.






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






12. 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.






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






14. 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.






15. Anything subtracted from your gross income.






16. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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. The chance that an investment has been misrepresented.






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






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






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






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






41. Money earned from investments and employment.






42. The chance or likelihood that something will happen.






43. 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)






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






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






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






47. Anything subtracted from your gross income.






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






49. 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)






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