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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 agreement to provide goods & services & or money in exchange for future payments with interest by a specific date or according to a specific schedule.






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






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






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






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






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






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






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






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






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






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






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






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






14. The fee paid for insurance protection.






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






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






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






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






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






20. The chance that an investment has been misrepresented.






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






22. Anything subtracted from your gross income.






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






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






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






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






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






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






30. Money earned from investments and employment.






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






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






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






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






35. 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.






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






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






38. 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.






39. 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.






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






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






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






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






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






46. 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.






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






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






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






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