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Test your basic knowledge |
Financial Literacy Vocab
Start Test
Study First
Subjects
:
literacy
,
personal-finance
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 measure of the uncertainty of an investment's rate of return; possible losses.
Credit Card
Risk
Deductions
Creditor
2. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Saving
Fraud Risk
Credit Report
Mortgage company
3. The original amount of money deposited or invested.
Principal
Medicare
Social security
Reconcile
4. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Lease
Simple Interest
Savings Accounts
Progressive tax
5. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Debit card
Gross income
Creditor
6. Wages or salary before deductions for taxes and other purposes.
Risk
Gross income
Hacking
401 k
7. The chance or likelihood that something will happen.
Coinsurance
Deductible
Copayment
Probability
8. A company that makes loans for the purchase of a house or other real estate.
Deductions
Social security
Mortgage company
Expenses
9. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Income
Deductible
Tax Deduction
Savings Accounts
10. 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)
Creditor
Risk
Mortgage
Progressive tax
11. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Medicare
Credit Score/Rating
Identity Theft
Dumpster Diving
12. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Interest
Nonprofit organization
Dumpster Diving
Simple Interest
13. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Identity Theft
Medicare
Rule of 72
Career
14. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Individual Retirement Account (IRA)
Bankruptcy
Progressive tax
Check
15. A non-cash contribution to a charitable organization which can be given a cash value.
Rate of Return
Landlord
Goal setting
Gifts in-kind
16. 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.
Credit
Check
Fraud
Fraud Risk
17. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Identity Theft
Medicare
Consumer Credit Counseling
Coinsurance
18. An establishment that collects and distributes credit history info. of individuals & business.
Credit
Goal setting
Benefits-received principle
Credit Bureau
19. 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.
Credit Bureau
Rule of 72
Medicare
Interest Rate
20. 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.
Social security
Tax Deduction
Identity Theft
Tax Deduction
21. A legal organization providing services or activities without commercial or monetary gain.
Gross income
Credit Score/Rating
Tax Deduction
Nonprofit organization
22. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Debit card
Benefits-received principle
Budget
Copayment
23. The value of the second-best alternative that a person gives up when making one choice instead of another.
Credit Score/Rating
Gambling
Individual Retirement Account (IRA)
Opportunity Cost
24. 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.
401 k
Credit Report
Landlord
Income
25. Someone who knowingly deceives you for their own personal gain.
Gross income
Variable expenses
Credit Score/Rating
Fraud
26. The chance that an investment has been misrepresented.
Copayment
Hacking
Fraud Risk
Gross income
27. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Progressive tax
Expenses
Goal setting
Hacking
28. How fast money in savings account or investment grows.
Charitable Giving
Creditor
Goal
Rate of Return
29. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Gambling
Annuity
Bankruptcy
Checking account
30. 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.
Bankruptcy
Credit
Tax Deduction
Morals
31. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Opportunity Cost
Charitable Giving
Hacking
Credit union
32. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Net income
401 k
Deductions
Mortgage
33. 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.
Charitable Giving
Budget
Credit Report
Copayment
34. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Career
Bankruptcy
Charitable Giving
Medicare
35. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Interest Rate
Fraud
Expenses
Budget
36. The chance that an investment has been misrepresented.
Checking account
Credit union
Mortgage
Fraud Risk
37. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Check
Tax Deduction
Annuity
Rate of Return
38. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Mortgage
Identity Theft
Fraud Risk
39. A person who pays rent; the legal name for a renter.
Credit Report
Tenant
Benefits-received principle
Consumer Credit Counseling
40. The fee paid for insurance protection.
Progressive tax
Premium
Goal
Lease
41. Payment for the use of someone else's money
Interest
Budget
Coinsurance
Fixed expenses
42. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Credit Score/Rating
Premium
Mortgage
43. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Copayment
Saving
Credit
Income
44. 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.
Hacking
Closing Costs
Gambling
Social security
45. 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.
Checking account
Copayment
Annuity
Interest Rate
46. Money earned from investments and employment.
Nonprofit organization
Income
Creditor
Fraud
47. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Goal setting
Social security
Tax Deduction
Credit union
48. 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.
Interest
Gifts in-kind
Simple Interest
Credit Report
49. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Charitable Giving
Net income
Interest Rate
Hacking
50. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Gambling
Bankruptcy
Income