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






3. 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.






4. The chance that an investment has been misrepresented.






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






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






7. 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.






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






9. 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.






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






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






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






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






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






15. Anything subtracted from your gross income.






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






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






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






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






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






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






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






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






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






25. Money earned from investments and employment.






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






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. A person or company to whom money is owed.






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






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






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






32. Taking risks with personal finances or personal assets






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






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






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






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






37. 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)






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






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






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






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






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






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






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






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






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






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






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






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






50. The chance or likelihood that something will happen.