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






2. Anything subtracted from your gross income.






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






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






5. 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.






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






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






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






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






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






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






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






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






15. 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.






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






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






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






19. 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)






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






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






22. The fee paid for insurance protection.






23. 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.






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






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






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






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






28. Money earned from investments and employment.






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






30. 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.






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






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






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






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






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






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






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






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






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






40. 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.






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






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






43. 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.






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






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






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






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






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






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






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