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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 comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Savings Accounts
Reconcile
Progressive tax
Checking account
2. Anything subtracted from your gross income.
Ethics
Deductions
Progressive tax
Nonprofit organization
3. A measure of the uncertainty of an investment's rate of return; possible losses.
Rule of 72
Risk
Mortgage
Credit
4. The chance or likelihood that something will happen.
Probability
Credit Report
Annuity
Principal
5. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Rule of 72
Career
Principal
Net income
6. Taking risks with personal finances or personal assets
Fixed expenses
Identity Theft
Credit Score/Rating
Gambling
7. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Annuity
Fixed expenses
Tax Deduction
Goal
8. 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.
Deductible
Social security
401 k
Dumpster Diving
9. Someone who knowingly deceives you for their own personal gain.
Fraud
Net income
Reconcile
Tenant
10. Someone who knowingly deceives you for their own personal gain.
Fraud Risk
Expenses
Fraud
Tenant
11. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Tax Deduction
Career
Nonprofit organization
12. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Probability
Budget
Mortgage company
Dumpster Diving
13. A company that makes loans for the purchase of a house or other real estate.
Reconcile
Budget
Landlord
Mortgage company
14. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Credit Card
Progressive tax
Rule of 72
Interest Rate
15. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Deductions
Gross income
Credit union
Premium
16. Money earned from investments and employment.
Opportunity Cost
Goal setting
Income
Landlord
17. A non-cash contribution to a charitable organization which can be given a cash value.
Coinsurance
Mortgage company
Check
Gifts in-kind
18. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Tax Deduction
Credit
Simple Interest
Progressive tax
19. 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.
Opportunity Cost
Lease
Morals
Rate of Return
20. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Expenses
Interest
Gambling
Credit Score/Rating
21. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Variable expenses
Check
Opportunity Cost
Goal
22. A person or company to whom money is owed.
Deductible
Reconcile
Rate of Return
Creditor
23. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Gross income
Deductions
Premium
Check
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.
Gross income
Dumpster Diving
401 k
Progressive tax
25. A bank or credit union account that allows withdrawals by writing a check.
Landlord
Net income
Medicare
Checking account
26. Wages or salary before deductions for taxes and other purposes.
Savings Accounts
401 k
Gross income
Mortgage
27. 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
Principal
Mortgage
Premium
28. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Saving
Reconcile
Gambling
Probability
29. 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
Landlord
Credit Score/Rating
30. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Social security
Debit card
Credit
31. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Goal
Credit Card
Credit union
Income
32. An establishment that collects and distributes credit history info. of individuals & business.
Credit Bureau
Simple Interest
Premium
Consumer Credit Counseling
33. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
401 k
Morals
Nonprofit organization
Annuity
34. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Career
Nonprofit organization
Net income
Income
35. A measure of the uncertainty of an investment's rate of return; possible losses.
Medicare
Premium
Saving
Risk
36. The chance that an investment has been misrepresented.
Fraud Risk
Reconcile
Interest
Individual Retirement Account (IRA)
37. Wages or salary before deductions for taxes and other purposes.
Gambling
Interest
Gross income
Benefits-received principle
38. A purposeful course of action or purpose in life that generally provides income
Goal
Copayment
Gambling
Career
39. A company that makes loans for the purchase of a house or other real estate.
Mortgage
Copayment
Ethics
Mortgage company
40. The percentage of the costs of medical services paid by the patient.
Principal
Charitable Giving
Individual Retirement Account (IRA)
Coinsurance
41. A person who owns property and rents it to another.
Budget
Gambling
Simple Interest
Landlord
42. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Lease
Net income
Annuity
Mortgage
43. 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.
Net income
Charitable Giving
Credit Score/Rating
Gambling
44. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Mortgage
Income
Dumpster Diving
45. The chance or likelihood that something will happen.
Simple Interest
Probability
Interest Rate
Creditor
46. 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)
Fraud
Progressive tax
Tax Deduction
Benefits-received principle
47. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Goal
Probability
Saving
401 k
48. The original amount of money deposited or invested.
Income
Medicare
Principal
Copayment
49. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Charitable Giving
Credit Score/Rating
Creditor
Deductible
50. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Variable expenses
Benefits-received principle
Debit card
Consumer Credit Counseling