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






2. The fee paid for insurance protection.






3. 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)






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






5. 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.






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






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






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






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






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






11. 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.






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






13. 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.






14. 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.






15. Money earned from investments and employment.






16. 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.






17. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.






18. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.






19. Taking risks with personal finances or personal assets






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






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






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






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






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






25. 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.






26. Money earned from investments and employment.






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






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






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






30. 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.






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






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






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






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






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






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






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






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






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






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






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






42. 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.






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






44. 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.






45. Anything subtracted from your gross income.






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






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






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






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






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