Financial Literacy State Test Review
questions n answers passed
Amortization - ANS ✔✔Payment of a portion of the principle of a mortgage loan, reducing or
amortizing the mortgage amount.
Annual Percentage Rate - ANS ✔✔The total annual percentage amount it will cost a person to
use credit.
Asset - ANS ✔✔Any items of value that people own, including cash, property, personal
possessions, and investments.
Automobile Insurance - ANS ✔✔Insurance purchased for cars, trucks, and other road vehicles.
Its primary use is to provide protection against physical damage and/or bodily injury resulting
from traffic collisions and against liability that could also arise therefrom.
Bank - ANS ✔✔An institution that handles savings and checking accounts, issues loans and
credit, and deals in government and corporate issued securities.
Bankruptcy - ANS ✔✔A legal process to get out of debt when you can no longer make all your
required payment.
Beneficiary - ANS ✔✔The person designated to receive the benefits of the policy upon the
death of another individual.
Benefit - ANS ✔✔Something the company offers besides a paycheck.
, Bond - ANS ✔✔A certificate of debt that is issued by a government or corporation in order to
raise money with a promise to pay a specified sum of money at a fixed time in the future and
carrying interest at a fixed rate.
Borrowing - ANS ✔✔Obtaining funds from a lender.
Budget - ANS ✔✔A plan for spending and saving money based on a person's goals during a
given time period.
Career - ANS ✔✔A life-work chosen by a person to use personal talent, provide some service or
goods, earn money, and contribute to society.
Charitable Giving - ANS ✔✔A gift made by an individual or an organization to a nonprofit
organization, charity or private foundation. Charitable donations are commonly in the form of
cash, but can also take the form of real estate, motor vehicles, clothing and other assets or
services.
Checking Account - ANS ✔✔A transaction deposit account at a financial institution that that
allows consumers to make deposit and withdrawals. Money that is in a checking account is very
liquid, meaning it can be easily accessed. It can be withdrawn using checks, automated cash
machines and electronic debits.
Claim - ANS ✔✔A formal request made to an insurance company for payment for a loss.
Collateral - ANS ✔✔A form of security to help guarantee that a creditor will be repaid.
Compound Interest - ANS ✔✔Interest which is calculated not only on the initial principal but
also the accumulated interest of prior periods.
Consumer - ANS ✔✔A person who purchases and uses goods or services.
questions n answers passed
Amortization - ANS ✔✔Payment of a portion of the principle of a mortgage loan, reducing or
amortizing the mortgage amount.
Annual Percentage Rate - ANS ✔✔The total annual percentage amount it will cost a person to
use credit.
Asset - ANS ✔✔Any items of value that people own, including cash, property, personal
possessions, and investments.
Automobile Insurance - ANS ✔✔Insurance purchased for cars, trucks, and other road vehicles.
Its primary use is to provide protection against physical damage and/or bodily injury resulting
from traffic collisions and against liability that could also arise therefrom.
Bank - ANS ✔✔An institution that handles savings and checking accounts, issues loans and
credit, and deals in government and corporate issued securities.
Bankruptcy - ANS ✔✔A legal process to get out of debt when you can no longer make all your
required payment.
Beneficiary - ANS ✔✔The person designated to receive the benefits of the policy upon the
death of another individual.
Benefit - ANS ✔✔Something the company offers besides a paycheck.
, Bond - ANS ✔✔A certificate of debt that is issued by a government or corporation in order to
raise money with a promise to pay a specified sum of money at a fixed time in the future and
carrying interest at a fixed rate.
Borrowing - ANS ✔✔Obtaining funds from a lender.
Budget - ANS ✔✔A plan for spending and saving money based on a person's goals during a
given time period.
Career - ANS ✔✔A life-work chosen by a person to use personal talent, provide some service or
goods, earn money, and contribute to society.
Charitable Giving - ANS ✔✔A gift made by an individual or an organization to a nonprofit
organization, charity or private foundation. Charitable donations are commonly in the form of
cash, but can also take the form of real estate, motor vehicles, clothing and other assets or
services.
Checking Account - ANS ✔✔A transaction deposit account at a financial institution that that
allows consumers to make deposit and withdrawals. Money that is in a checking account is very
liquid, meaning it can be easily accessed. It can be withdrawn using checks, automated cash
machines and electronic debits.
Claim - ANS ✔✔A formal request made to an insurance company for payment for a loss.
Collateral - ANS ✔✔A form of security to help guarantee that a creditor will be repaid.
Compound Interest - ANS ✔✔Interest which is calculated not only on the initial principal but
also the accumulated interest of prior periods.
Consumer - ANS ✔✔A person who purchases and uses goods or services.
