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






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






3. 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.






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






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






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






7. 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.






8. An amount of money that the member or insured pays directly to a provider at the time services are rendered.






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






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. How fast money in savings account or investment grows.






12. 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.






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






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






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






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






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






18. Taking risks with personal finances or personal assets






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






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






21. 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.






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






23. A plastic card used to deduct a purchase amount directly from your checking account.






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






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






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






27. The chance or likelihood that something will happen.






28. A plastic card used to deduct a purchase amount directly from your checking account.






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






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






31. The chance that an investment has been misrepresented.






32. The original amount of money deposited or invested.






33. Taking risks with personal finances or personal assets






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






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






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






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






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






39. The fee paid for insurance protection.






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






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






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






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






44. Anything subtracted from your gross income.






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






46. 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.






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






48. Anything subtracted from your gross income.






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






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