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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 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)






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






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






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






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






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






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






8. 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.






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






10. 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.






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






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






13. The original amount of money deposited or invested.






14. The original amount of money deposited or invested.






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






16. 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.






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






18. The chance that an investment has been misrepresented.






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






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






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






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






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






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






25. 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.






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






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






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






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






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






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






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






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






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






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






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






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






38. 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.






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






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






41. Taking risks with personal finances or personal assets






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






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






44. The chance that an investment has been misrepresented.






45. 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.






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






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






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






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






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