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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. 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.






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






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






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






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






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






7. 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.






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






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






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






11. The original amount of money deposited or invested.






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






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






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






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






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






17. The chance that an investment has been misrepresented.






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






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






20. 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.






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






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






24. Taking risks with personal finances or personal assets






25. Money earned from investments and employment.






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






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






28. The chance or likelihood that something will happen.






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






30. 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.






31. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.






32. The chance that an investment has been misrepresented.






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






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






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






36. 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.






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






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






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






40. 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.






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






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






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






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






45. The fee paid for insurance protection.






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






47. 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.






48. Taking risks with personal finances or personal assets






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






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