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






2. The chance that an investment has been misrepresented.






3. 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.






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






5. The fee paid for insurance protection.






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






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






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






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






10. Money earned from investments and employment.






11. 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.






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






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






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






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






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






17. 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.






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






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






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






21. 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.






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






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






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






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






27. Taking risks with personal finances or personal assets






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






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






30. The chance or likelihood that something will happen.






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






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






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






34. The fee paid for insurance protection.






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






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






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






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






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






40. 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.






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






42. 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.






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






44. 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.






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






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






47. 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.






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






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






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