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






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






3. The chance that an investment has been misrepresented.






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






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






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






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






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






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






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






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






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






13. 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.






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






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






16. The original amount of money deposited or invested.






17. 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.






18. Taking risks with personal finances or personal assets






19. The fee paid for insurance protection.






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






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






22. 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.






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






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






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






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






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






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






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






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






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






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






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






34. Money earned from investments and employment.






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






36. 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)






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






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






39. 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.






40. 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.






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






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






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






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






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






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






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






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






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






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