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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 plan for managing money & dividing up expected income and expenses among spending and saving options based on personal goals during a given time period.






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






3. Money earned from investments and employment.






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






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






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






7. 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.






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






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






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






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






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






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






14. The fee paid for insurance protection.






15. 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.






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






17. Taking risks with personal finances or personal assets






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






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






20. Taking risks with personal finances or personal assets






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






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






23. 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.






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






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






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






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






28. 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.






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






30. 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.






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






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






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






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






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






36. 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.






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






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






39. 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.






40. 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)






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






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






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






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






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






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






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






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






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






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