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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 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.
Principal
Creditor
401 k
Rule of 72
2. Someone who knowingly deceives you for their own personal gain.
Goal setting
Debit card
Fraud
Budget
3. A person who pays rent; the legal name for a renter.
Rate of Return
Career
Net income
Tenant
4. A person who owns property and rents it to another.
Income
Landlord
Identity Theft
Budget
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.
Closing Costs
Interest Rate
Rule of 72
Dumpster Diving
6. A legal organization providing services or activities without commercial or monetary gain.
Income
Fraud Risk
Nonprofit organization
Charitable Giving
7. Payment for the use of someone else's money
Gifts in-kind
Expenses
Morals
Interest
8. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Career
Gross income
Credit union
Identity Theft
9. Payment for the use of someone else's money
Interest
Annuity
Social security
Gambling
10. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Charitable Giving
Variable expenses
Saving
Career
11. A measure of the uncertainty of an investment's rate of return; possible losses.
Goal
Risk
Deductions
Income
12. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Progressive tax
Expenses
Income
Morals
13. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Probability
Expenses
Deductions
14. Wages or salary before deductions for taxes and other purposes.
Gross income
Benefits-received principle
401 k
Consumer Credit Counseling
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.
Mortgage
Credit Report
Closing Costs
Income
16. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Gambling
Debit card
401 k
Morals
17. A measure of the uncertainty of an investment's rate of return; possible losses.
Bankruptcy
Risk
Mortgage company
Interest
18. A person who owns property and rents it to another.
Income
Landlord
Fraud Risk
Gambling
19. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Tenant
Reconcile
Checking account
Risk
20. 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.
Consumer Credit Counseling
Gifts in-kind
Credit
Closing Costs
21. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Coinsurance
Variable expenses
Budget
Simple Interest
22. The chance that an investment has been misrepresented.
Credit
Fraud Risk
Expenses
Mortgage
23. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Creditor
Mortgage company
Expenses
Variable expenses
24. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Income
Saving
Morals
Progressive tax
25. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Ethics
Credit Score/Rating
Deductible
Rule of 72
26. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Copayment
Credit Card
Savings Accounts
Deductible
27. An establishment that collects and distributes credit history info. of individuals & business.
Income
Creditor
Credit Bureau
Check
28. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Simple Interest
Individual Retirement Account (IRA)
Gambling
Consumer Credit Counseling
29. The value of the second-best alternative that a person gives up when making one choice instead of another.
Opportunity Cost
Saving
Ethics
Consumer Credit Counseling
30. The act of giving to charitable organizations or to those in need.
Principal
Individual Retirement Account (IRA)
Opportunity Cost
Charitable Giving
31. The chance or likelihood that something will happen.
Probability
Mortgage
Goal setting
Landlord
32. Anything subtracted from your gross income.
Credit Score/Rating
Deductions
Consumer Credit Counseling
Check
33. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Credit union
Annuity
Nonprofit organization
Fixed expenses
34. A company that makes loans for the purchase of a house or other real estate.
Medicare
Mortgage company
Interest Rate
Coinsurance
35. 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.
Rule of 72
Annuity
Social security
Credit
36. The chance that an investment has been misrepresented.
Interest Rate
Reconcile
Fraud Risk
Tenant
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.
Annuity
Social security
Dumpster Diving
Gross income
38. A person or company to whom money is owed.
Ethics
Creditor
Income
Mortgage
39. Someone who knowingly deceives you for their own personal gain.
Gifts in-kind
Fraud
Medicare
Credit Bureau
40. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Reconcile
Annuity
Budget
Saving
41. 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.
Rate of Return
401 k
Copayment
Risk
42. How fast money in savings account or investment grows.
Risk
Deductions
Interest Rate
Rate of Return
43. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Credit union
Rate of Return
Dumpster Diving
Mortgage company
44. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Budget
Tax Deduction
Medicare
Credit Card
45. Costs paid when buying a house or real estate.
Income
Closing Costs
Fixed expenses
Credit Bureau
46. 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.
Creditor
Lease
Income
Check
47. 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.
Tenant
Rule of 72
Savings Accounts
Income
48. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Lease
Mortgage company
Fraud Risk
49. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Mortgage company
Benefits-received principle
Goal setting
Landlord
50. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Gambling
Credit Bureau
Deductible
Tenant