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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 chance or likelihood that something will happen.
Consumer Credit Counseling
Probability
Credit Card
Opportunity Cost
2. 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
Income
Medicare
Saving
3. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Credit Bureau
Net income
Medicare
Copayment
4. 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.
Variable expenses
Annuity
Individual Retirement Account (IRA)
Ethics
5. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Interest
Rate of Return
Variable expenses
Credit union
6. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Coinsurance
Medicare
Income
Fraud
7. A plastic card used to deduct a purchase amount directly from your checking account.
Debit card
Principal
Credit Score/Rating
Probability
8. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Identity Theft
Individual Retirement Account (IRA)
Deductions
Individual Retirement Account (IRA)
9. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Goal
Charitable Giving
Variable expenses
Gambling
10. 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.
Tax Deduction
Lease
Credit
Social security
11. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Rule of 72
Mortgage company
Deductible
Benefits-received principle
12. An establishment that collects and distributes credit history info. of individuals & business.
Mortgage company
Credit Bureau
Credit Card
Creditor
13. 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.
Credit Report
Income
Deductible
401 k
14. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Net income
Saving
Lease
Copayment
15. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Fraud Risk
Mortgage
Credit Card
Consumer Credit Counseling
16. A plastic card used to deduct a purchase amount directly from your checking account.
Debit card
Savings Accounts
Consumer Credit Counseling
Benefits-received principle
17. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Closing Costs
Reconcile
Risk
Annuity
18. Costs paid when buying a house or real estate.
Interest
Closing Costs
Net income
Copayment
19. A non-cash contribution to a charitable organization which can be given a cash value.
Mortgage company
Gifts in-kind
Ethics
Ethics
20. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Credit Score/Rating
Variable expenses
Individual Retirement Account (IRA)
21. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Interest Rate
Principal
Credit union
Identity Theft
22. 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.
Benefits-received principle
Credit Score/Rating
Rule of 72
Annuity
23. 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.
Fixed expenses
Lease
Credit
Ethics
24. 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
Interest
Goal setting
Charitable Giving
25. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Risk
Savings Accounts
Premium
Credit Score/Rating
26. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Fraud
Gambling
Identity Theft
27. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Lease
Income
Saving
Annuity
28. A company that makes loans for the purchase of a house or other real estate.
Medicare
Mortgage company
Mortgage
Fraud Risk
29. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Deductible
Mortgage
Net income
Fraud Risk
30. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Credit Card
Fixed expenses
Premium
Savings Accounts
31. The original amount of money deposited or invested.
Principal
Income
Probability
Rule of 72
32. The chance or likelihood that something will happen.
Probability
Copayment
Opportunity Cost
Tax Deduction
33. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Interest
Reconcile
Mortgage company
Bankruptcy
34. 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.
Variable expenses
Credit Score/Rating
Charitable Giving
Credit union
35. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Simple Interest
Debit card
Closing Costs
401 k
36. Costs paid when buying a house or real estate.
Closing Costs
Budget
Progressive tax
Credit Score/Rating
37. A person or company to whom money is owed.
Credit Score/Rating
Creditor
Rule of 72
Variable expenses
38. The percentage of the costs of medical services paid by the patient.
Nonprofit organization
Medicare
Coinsurance
Variable expenses
39. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Mortgage company
Identity Theft
Closing Costs
Saving
40. The value of the second-best alternative that a person gives up when making one choice instead of another.
Goal
Hacking
Reconcile
Opportunity Cost
41. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Interest
Credit
Net income
Tax Deduction
42. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Saving
Individual Retirement Account (IRA)
Mortgage
Risk
43. 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.
Debit card
Charitable Giving
Credit
Closing Costs
44. 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.
Credit Report
Expenses
Landlord
Budget
45. A purposeful course of action or purpose in life that generally provides income
Mortgage company
Bankruptcy
Closing Costs
Career
46. A legal organization providing services or activities without commercial or monetary gain.
Net income
Credit Bureau
Nonprofit organization
Interest Rate
47. Wages or salary before deductions for taxes and other purposes.
Mortgage
Gross income
Rule of 72
Gambling
48. A person who pays rent; the legal name for a renter.
Probability
Income
Tenant
Goal
49. The fee paid for insurance protection.
Bankruptcy
Premium
Budget
Mortgage
50. The value of the second-best alternative that a person gives up when making one choice instead of another.
Checking account
Opportunity Cost
Saving
Nonprofit organization