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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 fee paid for insurance protection.






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






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






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






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






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






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






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






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






10. The chance or likelihood that something will happen.






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






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






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






14. 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.






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






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






17. 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.






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






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






20. 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.






21. 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.






22. The chance that an investment has been misrepresented.






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






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






25. Anything subtracted from your gross income.






26. 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.






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






28. 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.






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






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






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






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






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






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






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






36. Anything subtracted from your gross income.






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






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






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






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






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






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






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






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






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






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






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






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






49. The chance that an investment has been misrepresented.






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