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






2. The fee paid for insurance protection.






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






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






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






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






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






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






9. 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.






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






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






13. The fee paid for insurance protection.






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






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






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. Taking risks with personal finances or personal assets






18. 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.






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






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






21. 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)






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






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






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






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






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






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






28. 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.






29. 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.






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






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






32. 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.






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






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






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






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






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






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






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






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






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






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






43. 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.






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






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






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






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






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






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






50. 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.