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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. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Goal setting
Gifts in-kind
Dumpster Diving
Saving
2. 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.
Nonprofit organization
Annuity
Morals
Gambling
3. 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.
Budget
Gifts in-kind
Rule of 72
Annuity
4. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Principal
Deductions
Credit Card
Hacking
5. The act of giving to charitable organizations or to those in need.
Benefits-received principle
Medicare
Charitable Giving
Variable expenses
6. 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.
Budget
Net income
Credit Card
Credit Report
7. Someone who knowingly deceives you for their own personal gain.
Checking account
Fraud
Credit union
Checking account
8. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Dumpster Diving
Benefits-received principle
Credit
Rate of Return
9. A measure of the uncertainty of an investment's rate of return; possible losses.
Risk
Dumpster Diving
Charitable Giving
Closing Costs
10. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Reconcile
Identity Theft
Mortgage
Principal
11. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Income
Benefits-received principle
Credit Bureau
Ethics
12. A non-cash contribution to a charitable organization which can be given a cash value.
Gifts in-kind
Nonprofit organization
Credit Report
Debit card
13. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Deductions
Medicare
Savings Accounts
401 k
14. Taking risks with personal finances or personal assets
Savings Accounts
Gambling
Check
Interest
15. The chance or likelihood that something will happen.
Creditor
Probability
Income
Fixed expenses
16. Money earned from investments and employment.
Progressive tax
Income
Savings Accounts
Credit Report
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.
Interest Rate
Premium
Credit
Check
18. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Deductible
Consumer Credit Counseling
Simple Interest
Saving
19. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Gambling
Premium
Benefits-received principle
20. A long-term loan to buy real estate including land and the structures on it.
Interest
Principal
Mortgage
Coinsurance
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.
Rule of 72
Risk
Mortgage company
Social security
22. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Gambling
Landlord
Hacking
Dumpster Diving
23. An establishment that collects and distributes credit history info. of individuals & business.
Income
401 k
Credit Bureau
Charitable Giving
24. A purposeful course of action or purpose in life that generally provides income
Credit Bureau
Career
Deductible
Gross income
25. The chance or likelihood that something will happen.
Savings Accounts
Fraud
Probability
Net income
26. Payment for the use of someone else's money
Savings Accounts
Deductions
Interest
Net income
27. A company that makes loans for the purchase of a house or other real estate.
Nonprofit organization
Ethics
Closing Costs
Mortgage company
28. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Goal setting
Consumer Credit Counseling
Fixed expenses
Morals
29. Anything subtracted from your gross income.
Principal
Social security
Deductions
Debit card
30. A bank or credit union account that allows withdrawals by writing a check.
Savings Accounts
Credit Report
Premium
Checking account
31. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Goal
Career
Premium
Deductions
32. A legal organization providing services or activities without commercial or monetary gain.
Goal
Nonprofit organization
Rate of Return
Saving
33. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Deductions
Interest Rate
Interest
Dumpster Diving
34. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Budget
Credit union
Income
Check
35. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Gross income
Individual Retirement Account (IRA)
Rate of Return
Credit
36. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Landlord
Copayment
Interest Rate
Fixed expenses
37. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Simple Interest
Morals
Credit Report
Variable expenses
38. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Premium
Social security
Credit union
Credit Score/Rating
39. A purposeful course of action or purpose in life that generally provides income
Career
Credit
Bankruptcy
Tax Deduction
40. Taking risks with personal finances or personal assets
Gambling
Closing Costs
Opportunity Cost
Nonprofit organization
41. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Check
Identity Theft
Credit
Gifts in-kind
42. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Mortgage
Deductions
Credit
401 k
43. The percentage of the costs of medical services paid by the patient.
Risk
Coinsurance
Morals
Premium
44. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Closing Costs
Fraud
Mortgage
45. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Bankruptcy
Saving
Credit
Savings Accounts
46. The chance that an investment has been misrepresented.
Fraud Risk
Premium
Rate of Return
Interest Rate
47. 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)
Progressive tax
Benefits-received principle
Credit Bureau
Probability
48. 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
Copayment
Progressive tax
Fixed expenses
49. Costs paid when buying a house or real estate.
Expenses
Hacking
Closing Costs
Expenses
50. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Fraud Risk
Expenses
Charitable Giving
Dumpster Diving