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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 costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Ethics
Gifts in-kind
Rule of 72
Expenses
2. Money earned from investments and employment.
Income
401 k
Progressive tax
Closing Costs
3. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Checking account
401 k
Consumer Credit Counseling
Savings Accounts
4. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Credit union
Reconcile
Goal
Bankruptcy
5. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Budget
Interest Rate
Goal
6. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Income
Variable expenses
Reconcile
Medicare
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.
Annuity
Deductions
Copayment
Goal setting
8. 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.
Income
Checking account
Credit Score/Rating
Annuity
9. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Credit Card
Simple Interest
Risk
Copayment
10. An establishment that collects and distributes credit history info. of individuals & business.
Social security
Deductible
Credit Bureau
Tax Deduction
11. A long-term loan to buy real estate including land and the structures on it.
Fraud Risk
Tax Deduction
Mortgage
Income
12. A company that makes loans for the purchase of a house or other real estate.
Mortgage company
Interest Rate
Interest
Annuity
13. 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)
Premium
Income
Fixed expenses
Progressive tax
14. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Interest Rate
Career
Individual Retirement Account (IRA)
Income
15. 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
Gifts in-kind
Benefits-received principle
401 k
16. A set of principles or beliefs that govern an individual's actions.
Reconcile
Dumpster Diving
Ethics
Hacking
17. The original amount of money deposited or invested.
Credit
Principal
Benefits-received principle
Gross income
18. 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)
Probability
Tax Deduction
Progressive tax
Mortgage
19. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Annuity
Check
Benefits-received principle
Charitable Giving
20. The chance that an investment has been misrepresented.
Debit card
Debit card
Fraud Risk
Rate of Return
21. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Goal setting
Tax Deduction
Gambling
Coinsurance
22. 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
Hacking
Net income
Expenses
23. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Checking account
Creditor
Net income
24. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Identity Theft
Income
Income
Gross income
25. The act of giving to charitable organizations or to those in need.
Creditor
Credit union
Charitable Giving
Interest
26. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Deductions
Simple Interest
Landlord
Tax Deduction
27. Costs paid when buying a house or real estate.
Closing Costs
Gross income
Goal setting
Credit
28. A person who pays rent; the legal name for a renter.
Charitable Giving
Tenant
Tax Deduction
Mortgage
29. The value of the second-best alternative that a person gives up when making one choice instead of another.
Dumpster Diving
Benefits-received principle
Opportunity Cost
Fraud Risk
30. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Fraud Risk
Deductible
Annuity
Morals
31. Someone who knowingly deceives you for their own personal gain.
Gifts in-kind
Credit union
Saving
Fraud
32. Money earned from investments and employment.
Dumpster Diving
Income
Consumer Credit Counseling
Deductions
33. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Gross income
Gross income
Credit
Interest Rate
34. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Bankruptcy
Creditor
Career
Gross income
35. 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.
Annuity
Rule of 72
Bankruptcy
Nonprofit organization
36. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Bankruptcy
Social security
Income
Interest Rate
37. 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.
Credit Bureau
401 k
Dumpster Diving
Creditor
38. The fee paid for insurance protection.
Premium
Gambling
Medicare
Hacking
39. Wages or salary before deductions for taxes and other purposes.
Gross income
Individual Retirement Account (IRA)
Consumer Credit Counseling
Rule of 72
40. A purposeful course of action or purpose in life that generally provides income
Checking account
Income
Gross income
Career
41. A long-term loan to buy real estate including land and the structures on it.
401 k
Progressive tax
Mortgage
Fraud
42. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Deductible
Savings Accounts
Consumer Credit Counseling
Credit Card
43. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Individual Retirement Account (IRA)
Copayment
Reconcile
Copayment
44. A plastic card used to deduct a purchase amount directly from your checking account.
Debit card
Consumer Credit Counseling
Interest Rate
Mortgage company
45. A person who owns property and rents it to another.
Fixed expenses
Credit Score/Rating
Landlord
Income
46. A legal organization providing services or activities without commercial or monetary gain.
Credit Bureau
Nonprofit organization
Expenses
Progressive tax
47. Payment for the use of someone else's money
Interest
Variable expenses
Closing Costs
Budget
48. How fast money in savings account or investment grows.
Fixed expenses
Credit Score/Rating
Risk
Rate of Return
49. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Morals
Tax Deduction
Hacking
Career
50. The original amount of money deposited or invested.
Deductions
Principal
Credit Report
Variable expenses