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






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






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






4. The chance that an investment has been misrepresented.






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






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






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






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






9. The chance that an investment has been misrepresented.






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






11. The fee paid for insurance protection.






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






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






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






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






16. 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.






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






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






19. 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.






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






21. 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.






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






23. 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.






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






25. 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.






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






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






28. Money earned from investments and employment.






29. Anything subtracted from your gross income.






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






31. 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.






32. 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.






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






34. 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)






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






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






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






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






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






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






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






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






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






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






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






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






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






49. 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.






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