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






2. Money earned from investments and employment.






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 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.






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






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






7. 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.






8. 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.






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






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






11. The chance that an investment has been misrepresented.






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






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






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






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






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






17. The original amount of money deposited or invested.






18. 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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






34. 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.






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






36. The fee paid for insurance protection.






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






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






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






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






41. 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.






42. 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.






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






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






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






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






47. The chance or likelihood that something will happen.






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






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






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