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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. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Fraud Risk
Credit
Charitable Giving
2. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Gambling
Consumer Credit Counseling
Tax Deduction
Credit union
3. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Goal setting
Tenant
Budget
Closing Costs
4. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Variable expenses
Credit Score/Rating
Check
Savings Accounts
5. A legal organization providing services or activities without commercial or monetary gain.
Credit Bureau
Nonprofit organization
Tax Deduction
Net income
6. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Saving
Benefits-received principle
Closing Costs
Credit union
7. A long-term loan to buy real estate including land and the structures on it.
Landlord
Mortgage
Saving
Rule of 72
8. A legal organization providing services or activities without commercial or monetary gain.
Mortgage
Fixed expenses
Opportunity Cost
Nonprofit organization
9. Money earned from investments and employment.
Income
Expenses
Copayment
Closing Costs
10. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Reconcile
Rule of 72
Fixed expenses
Credit union
11. 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
Benefits-received principle
Dumpster Diving
Premium
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.
Bankruptcy
Goal
Mortgage
Credit union
13. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Goal
Benefits-received principle
Bankruptcy
Credit Card
14. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Risk
Dumpster Diving
Morals
Income
15. 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.
Consumer Credit Counseling
Career
Lease
Fraud Risk
16. 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.
Opportunity Cost
Mortgage
Budget
Income
17. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Deductible
Tax Deduction
Medicare
Interest
18. A person who pays rent; the legal name for a renter.
Deductible
Fixed expenses
Tenant
Fraud
19. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Credit
Interest Rate
Annuity
Probability
20. Taking risks with personal finances or personal assets
Bankruptcy
Gambling
Fraud
Check
21. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Landlord
Gross income
401 k
Morals
22. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Medicare
401 k
Simple Interest
Income
23. A person who pays rent; the legal name for a renter.
Lease
Tenant
Premium
Income
24. A person who owns property and rents it to another.
Creditor
Landlord
Copayment
Medicare
25. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Risk
Medicare
Consumer Credit Counseling
Mortgage
26. A non-cash contribution to a charitable organization which can be given a cash value.
Income
Fraud Risk
Individual Retirement Account (IRA)
Gifts in-kind
27. The fee paid for insurance protection.
Premium
Opportunity Cost
Interest
Consumer Credit Counseling
28. Anything subtracted from your gross income.
Fixed expenses
Mortgage
Consumer Credit Counseling
Deductions
29. The fee paid for insurance protection.
Fraud
Premium
Fraud Risk
Deductible
30. A long-term loan to buy real estate including land and the structures on it.
Variable expenses
Net income
Check
Mortgage
31. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Individual Retirement Account (IRA)
Risk
Reconcile
Creditor
32. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Annuity
Credit Card
Interest Rate
Individual Retirement Account (IRA)
33. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Gross income
Deductible
Medicare
Probability
34. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Progressive tax
Nonprofit organization
Mortgage
Fixed expenses
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
Gifts in-kind
Rule of 72
Income
36. 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)
Income
Fraud
Progressive tax
Net income
37. Wages or salary before deductions for taxes and other purposes.
Hacking
Gross income
Consumer Credit Counseling
Fraud
38. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Fraud Risk
Income
Gross income
Tenant
39. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Annuity
Interest Rate
Income
Simple Interest
40. A company that makes loans for the purchase of a house or other real estate.
Interest
Opportunity Cost
Credit Bureau
Mortgage company
41. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Risk
Saving
Expenses
Hacking
42. The percentage of the costs of medical services paid by the patient.
Progressive tax
Coinsurance
Fraud
Bankruptcy
43. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Budget
Consumer Credit Counseling
Ethics
44. 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.
Credit Report
Gifts in-kind
Net income
Annuity
45. 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 Report
Goal
Landlord
Interest Rate
46. The chance or likelihood that something will happen.
Credit Report
Variable expenses
Interest Rate
Probability
47. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
401 k
Mortgage
Variable expenses
Simple Interest
48. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Deductions
Debit card
Creditor
49. An establishment that collects and distributes credit history info. of individuals & business.
Premium
Credit Bureau
Mortgage
Mortgage
50. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Reconcile
Annuity
Career
Saving