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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. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Deductions
Individual Retirement Account (IRA)
Income
Deductible
2. 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.
Variable expenses
Copayment
Lease
Creditor
3. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Fraud Risk
Consumer Credit Counseling
Nonprofit organization
Variable expenses
4. A long-term loan to buy real estate including land and the structures on it.
Credit
Mortgage
Goal setting
Landlord
5. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Check
Creditor
Benefits-received principle
Checking account
6. Someone who knowingly deceives you for their own personal gain.
Debit card
Gifts in-kind
Fraud
401 k
7. Anything subtracted from your gross income.
Credit Score/Rating
Deductions
Progressive tax
Nonprofit organization
8. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Simple Interest
Mortgage
Checking account
Mortgage
9. The chance or likelihood that something will happen.
Annuity
Social security
Landlord
Probability
10. A legal organization providing services or activities without commercial or monetary gain.
Nonprofit organization
Progressive tax
Landlord
Goal setting
11. The act of giving to charitable organizations or to those in need.
Charitable Giving
Fraud
Expenses
Rule of 72
12. A set of principles or beliefs that govern an individual's actions.
Fraud
Savings Accounts
Ethics
Credit Bureau
13. A set of principles or beliefs that govern an individual's actions.
Landlord
Ethics
Dumpster Diving
Credit Card
14. Payment for the use of someone else's money
Budget
Individual Retirement Account (IRA)
Opportunity Cost
Interest
15. Taking risks with personal finances or personal assets
Credit Card
Gambling
Principal
Expenses
16. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Nonprofit organization
Interest
Credit
Credit Card
17. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Identity Theft
Coinsurance
Deductible
Savings Accounts
18. An establishment that collects and distributes credit history info. of individuals & business.
Credit Bureau
Benefits-received principle
Mortgage
Budget
19. Anything subtracted from your gross income.
Identity Theft
Interest
Deductions
Fixed expenses
20. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
401 k
Deductible
Consumer Credit Counseling
Simple Interest
21. The original amount of money deposited or invested.
Income
Net income
Principal
Rate of Return
22. A long-term loan to buy real estate including land and the structures on it.
Mortgage
Gross income
Deductions
Benefits-received principle
23. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Dumpster Diving
Goal setting
Morals
Rate of Return
24. A non-cash contribution to a charitable organization which can be given a cash value.
Gifts in-kind
Mortgage
Medicare
Coinsurance
25. A measure of the uncertainty of an investment's rate of return; possible losses.
Risk
Fixed expenses
401 k
Gross income
26. 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
Income
Dumpster Diving
Landlord
27. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
401 k
Budget
Bankruptcy
Reconcile
28. A company that makes loans for the purchase of a house or other real estate.
Mortgage
Mortgage company
Charitable Giving
Credit Card
29. 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.
Rule of 72
Consumer Credit Counseling
Mortgage
Progressive tax
30. Money earned from investments and employment.
Tenant
Tenant
Income
Check
31. 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)
Tenant
Progressive tax
Tenant
Saving
32. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Credit Bureau
Charitable Giving
Rate of Return
Income
33. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Variable expenses
Rule of 72
Savings Accounts
Career
34. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Social security
Credit union
Morals
Medicare
35. A person or company to whom money is owed.
Opportunity Cost
Fixed expenses
Individual Retirement Account (IRA)
Creditor
36. 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.
Checking account
Probability
401 k
Charitable Giving
37. 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
Annuity
Credit
Identity Theft
38. 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
Credit union
Closing Costs
Gambling
39. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Credit Card
Creditor
401 k
Reconcile
40. The chance or likelihood that something will happen.
Variable expenses
Saving
Probability
Credit Bureau
41. The percentage of the costs of medical services paid by the patient.
Reconcile
Budget
Career
Coinsurance
42. Taking risks with personal finances or personal assets
Gambling
Goal setting
Rule of 72
Gifts in-kind
43. A plastic card used to deduct a purchase amount directly from your checking account.
Copayment
Fraud
Identity Theft
Debit card
44. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Charitable Giving
Medicare
Simple Interest
Lease
45. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Fraud Risk
Progressive tax
Bankruptcy
Saving
46. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
401 k
Expenses
Principal
Interest
47. 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.
Checking account
Landlord
Budget
401 k
48. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Savings Accounts
Goal setting
Check
Fraud
49. A measure of the uncertainty of an investment's rate of return; possible losses.
Opportunity Cost
Risk
Budget
Fraud
50. A purposeful course of action or purpose in life that generally provides income
Simple Interest
Career
Tenant
Expenses