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






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






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






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






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






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 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.






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






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






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






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






12. The chance or likelihood that something will happen.






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






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






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






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






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






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






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






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






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






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






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






24. 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.






25. 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.






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






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






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






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






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






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






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






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






34. 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.






35. 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.






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






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






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






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






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






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






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






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






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






45. Money earned from investments and employment.






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






47. 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.






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






49. The fee paid for insurance protection.






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