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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. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Dumpster Diving
Credit Report
Medicare
Lease
2. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Probability
Credit Score/Rating
Individual Retirement Account (IRA)
Copayment
3. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Copayment
Copayment
Simple Interest
Interest Rate
4. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Savings Accounts
Variable expenses
Career
Checking account
5. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Nonprofit organization
Hacking
Credit Score/Rating
Identity Theft
6. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Ethics
Goal
Reconcile
Credit Bureau
7. 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.
Rate of Return
Social security
Annuity
Landlord
8. 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)
Hacking
Social security
Progressive tax
Simple Interest
9. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Consumer Credit Counseling
Fixed expenses
Check
Premium
10. 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.
Hacking
Credit Score/Rating
Identity Theft
Individual Retirement Account (IRA)
11. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Credit union
Credit Card
Medicare
Rate of Return
12. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Individual Retirement Account (IRA)
Opportunity Cost
Credit Card
Debit card
13. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Expenses
Check
Ethics
Checking account
14. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Creditor
Nonprofit organization
Opportunity Cost
Individual Retirement Account (IRA)
15. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Mortgage
Saving
Bankruptcy
Risk
16. 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.
Career
Copayment
Hacking
Credit Report
17. The chance that an investment has been misrepresented.
Nonprofit organization
Progressive tax
Gross income
Fraud Risk
18. 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
Tax Deduction
Mortgage
Mortgage company
19. A company that makes loans for the purchase of a house or other real estate.
Tenant
Risk
Consumer Credit Counseling
Mortgage company
20. 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.
Budget
Medicare
Lease
Credit Bureau
21. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Reconcile
Dumpster Diving
Savings Accounts
Interest Rate
22. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Simple Interest
Expenses
Goal
Medicare
23. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Opportunity Cost
Gifts in-kind
Bankruptcy
Fixed expenses
24. An establishment that collects and distributes credit history info. of individuals & business.
Progressive tax
Premium
Credit Bureau
Morals
25. A purposeful course of action or purpose in life that generally provides income
Simple Interest
Probability
Gifts in-kind
Career
26. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Fixed expenses
Principal
Fraud Risk
Ethics
27. 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.
Mortgage
Social security
Ethics
Lease
28. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Gross income
Credit Score/Rating
Credit Report
29. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Benefits-received principle
Ethics
Net income
Bankruptcy
30. The chance or likelihood that something will happen.
Expenses
Mortgage
Probability
Medicare
31. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Rate of Return
Consumer Credit Counseling
Rule of 72
Credit Score/Rating
32. Wages or salary before deductions for taxes and other purposes.
Dumpster Diving
Tax Deduction
Gambling
Gross income
33. Anything subtracted from your gross income.
Mortgage company
Deductions
Gross income
Principal
34. A plastic card used to deduct a purchase amount directly from your checking account.
Debit card
Gambling
Net income
Annuity
35. A long-term loan to buy real estate including land and the structures on it.
Dumpster Diving
Premium
Mortgage
Variable expenses
36. 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 Score/Rating
Credit
Bankruptcy
Budget
37. 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.
Benefits-received principle
Individual Retirement Account (IRA)
Credit union
Credit Report
38. A plastic card used to deduct a purchase amount directly from your checking account.
Debit card
Hacking
Rule of 72
Premium
39. Someone who knowingly deceives you for their own personal gain.
Savings Accounts
Fraud
Charitable Giving
Charitable Giving
40. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Opportunity Cost
Medicare
Rate of Return
Benefits-received principle
41. 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.
Creditor
Credit Score/Rating
Rate of Return
Coinsurance
42. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Fraud Risk
Opportunity Cost
Hacking
Net income
43. The original amount of money deposited or invested.
Principal
Morals
Nonprofit organization
Reconcile
44. 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.
Social security
Lease
Variable expenses
Identity Theft
45. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Saving
Morals
Charitable Giving
Debit card
46. A person or company to whom money is owed.
Creditor
Morals
Probability
Tenant
47. Payment for the use of someone else's money
Goal setting
Dumpster Diving
Interest
Savings Accounts
48. A measure of the uncertainty of an investment's rate of return; possible losses.
Check
Risk
Identity Theft
Gross income
49. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Credit Bureau
Reconcile
Dumpster Diving
Mortgage
50. Anything subtracted from your gross income.
Checking account
Simple Interest
Deductions
Saving