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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 original amount of money deposited or invested.






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






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






5. 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.






6. 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.






7. 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.






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






9. The fee paid for insurance protection.






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






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






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






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






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






15. Taking risks with personal finances or personal assets






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






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






18. 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.






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






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






21. 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.






22. 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.






23. 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.






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






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






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






27. 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)






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






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






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






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






32. 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.






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






34. 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)






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






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






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






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






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






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






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






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






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






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






47. Anything subtracted from your gross income.






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






49. Taking risks with personal finances or personal assets






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