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






2. 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.






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






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






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






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






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






9. 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.






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






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






12. 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.






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






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






15. 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.






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






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






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






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






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






21. 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.






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






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






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






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






26. 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.






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






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






29. 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)






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






45. The original amount of money deposited or invested.






46. 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.






47. Money earned from investments and employment.






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






49. Money earned from investments and employment.






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