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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 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
Nonprofit organization
Rate of Return
Individual Retirement Account (IRA)
2. An establishment that collects and distributes credit history info. of individuals & business.
Gross income
Credit Bureau
Budget
Creditor
3. 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.
Progressive tax
Simple Interest
Credit
Consumer Credit Counseling
4. The chance that an investment has been misrepresented.
Medicare
Mortgage company
Simple Interest
Fraud Risk
5. 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.
Expenses
Closing Costs
Risk
Rule of 72
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.
Landlord
Reconcile
Closing Costs
Fixed expenses
7. 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
Tenant
Nonprofit organization
Individual Retirement Account (IRA)
8. Anything subtracted from your gross income.
Income
Lease
Deductions
Progressive tax
9. 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.
Income
Lease
Credit
Tenant
10. The act of giving to charitable organizations or to those in need.
Individual Retirement Account (IRA)
Nonprofit organization
Charitable Giving
Variable expenses
11. The percentage of the costs of medical services paid by the patient.
Coinsurance
Goal setting
Social security
Tax Deduction
12. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Probability
Annuity
401 k
Bankruptcy
13. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Medicare
Checking account
Closing Costs
Savings Accounts
14. A long-term loan to buy real estate including land and the structures on it.
Closing Costs
Risk
Mortgage
Ethics
15. A measure of the uncertainty of an investment's rate of return; possible losses.
Risk
Tenant
Creditor
Income
16. Wages or salary before deductions for taxes and other purposes.
Gross income
Interest Rate
Mortgage company
Gambling
17. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Risk
Tax Deduction
Goal setting
Medicare
18. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Identity Theft
Charitable Giving
Gambling
Landlord
19. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Annuity
Creditor
Progressive tax
20. How fast money in savings account or investment grows.
Landlord
Copayment
Rate of Return
Expenses
21. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Goal
Copayment
Saving
22. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Saving
Progressive tax
Identity Theft
Hacking
23. The chance or likelihood that something will happen.
Credit union
Probability
Saving
Dumpster Diving
24. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Budget
Credit Card
Ethics
Tax Deduction
25. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Charitable Giving
Mortgage
Debit card
Net income
26. Someone who knowingly deceives you for their own personal gain.
Fraud
Mortgage
Individual Retirement Account (IRA)
Income
27. A long-term loan to buy real estate including land and the structures on it.
Mortgage
Rule of 72
Interest
Gross income
28. Costs paid when buying a house or real estate.
Rate of Return
Identity Theft
Interest
Closing Costs
29. A person or company to whom money is owed.
Consumer Credit Counseling
Gross income
Goal setting
Creditor
30. The chance that an investment has been misrepresented.
Goal setting
Annuity
Debit card
Fraud Risk
31. The fee paid for insurance protection.
Premium
Ethics
Expenses
Lease
32. 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.
Opportunity Cost
Gross income
Gifts in-kind
Annuity
33. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Net income
Premium
Coinsurance
34. Someone who knowingly deceives you for their own personal gain.
Fraud
Gross income
Consumer Credit Counseling
Copayment
35. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Saving
Principal
Fixed expenses
Charitable Giving
36. 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.
Mortgage
Income
Credit Score/Rating
Simple Interest
37. 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.
Credit union
Variable expenses
Social security
Career
38. Taking risks with personal finances or personal assets
Simple Interest
Gambling
Gifts in-kind
401 k
39. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Gross income
401 k
Annuity
Dumpster Diving
40. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Interest Rate
Goal setting
Rate of Return
Closing Costs
41. Costs paid when buying a house or real estate.
Bankruptcy
Closing Costs
Consumer Credit Counseling
Progressive tax
42. 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)
Benefits-received principle
Interest Rate
Progressive tax
Interest
43. 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.
Identity Theft
Gross income
Gifts in-kind
Annuity
44. The act of giving to charitable organizations or to those in need.
Fixed expenses
Individual Retirement Account (IRA)
Charitable Giving
Reconcile
45. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Charitable Giving
Check
Tax Deduction
Mortgage
46. The fee paid for insurance protection.
Premium
Nonprofit organization
Deductions
Charitable Giving
47. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Credit Card
Career
Probability
Mortgage company
48. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Gross income
Income
Variable expenses
Savings Accounts
49. Taking risks with personal finances or personal assets
Gambling
Credit Bureau
Budget
Copayment
50. 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
Credit Card
Risk
Bankruptcy