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






2. 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.






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






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






5. Taking risks with personal finances or personal assets






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






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






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






9. The fee paid for insurance protection.






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






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






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






13. 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.






14. The chance or likelihood that something will happen.






15. 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)






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






17. 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.






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






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






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






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






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






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






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






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






26. 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.






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






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






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






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






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






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






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






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






35. The chance that an investment has been misrepresented.






36. The fee paid for insurance protection.






37. 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.






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






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






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






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






43. Anything subtracted from your gross income.






44. 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.






45. The chance or likelihood that something will happen.






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






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






49. The original amount of money deposited or invested.






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