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






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






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






5. The chance that an investment has been misrepresented.






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






7. The chance or likelihood that something will happen.






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






9. 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.






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






11. 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.






12. 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.






13. 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.






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






15. The fee paid for insurance protection.






16. Money earned from investments and employment.






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






18. Anything subtracted from your gross income.






19. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).






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






21. The fee paid for insurance protection.






22. 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)






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






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






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






26. 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.






27. 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.






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






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






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






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






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






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






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






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






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






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






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






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






40. 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.






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






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






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






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






45. 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.






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






47. The original amount of money deposited or invested.






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






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






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







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