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






2. 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.






3. The chance that an investment has been misrepresented.






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






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






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






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






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






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






10. 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)






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






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






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






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






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






16. 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.






17. 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.






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






19. 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.






20. 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.






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






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






24. Anything subtracted from your gross income.






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






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






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






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






29. 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.






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






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






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. 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.






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






35. The chance that an investment has been misrepresented.






36. The original amount of money deposited or invested.






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






38. Money earned from investments and employment.






39. The chance or likelihood that something will happen.






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






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






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






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






44. 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.






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






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






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






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






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






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