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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. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Medicare
Lease
Deductible
Check
2. Anything subtracted from your gross income.
Premium
Fraud Risk
Net income
Deductions
3. Wages or salary before deductions for taxes and other purposes.
Lease
401 k
Gross income
Credit
4. A non-cash contribution to a charitable organization which can be given a cash value.
Check
401 k
Gifts in-kind
Annuity
5. Anything subtracted from your gross income.
Individual Retirement Account (IRA)
Fixed expenses
Deductions
Debit card
6. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Lease
Individual Retirement Account (IRA)
Consumer Credit Counseling
Coinsurance
7. Money earned from investments and employment.
Gambling
Creditor
Income
Landlord
8. 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
Variable expenses
Fraud
Savings Accounts
9. A plastic card used to deduct a purchase amount directly from your checking account.
Deductions
Opportunity Cost
Fraud Risk
Debit card
10. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Credit Score/Rating
Consumer Credit Counseling
Principal
11. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Debit card
Principal
Credit Card
Premium
12. 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.
Mortgage company
Credit Bureau
Annuity
Closing Costs
13. 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
Variable expenses
Reconcile
Consumer Credit Counseling
14. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
401 k
Deductions
Creditor
Individual Retirement Account (IRA)
15. Wages or salary before deductions for taxes and other purposes.
Mortgage
Gross income
Credit Report
Income
16. The percentage of the costs of medical services paid by the patient.
Saving
Check
Savings Accounts
Coinsurance
17. A purposeful course of action or purpose in life that generally provides income
Progressive tax
Bankruptcy
Career
Charitable Giving
18. A measure of the uncertainty of an investment's rate of return; possible losses.
Risk
Budget
Gifts in-kind
Social security
19. The value of the second-best alternative that a person gives up when making one choice instead of another.
Fixed expenses
Individual Retirement Account (IRA)
Opportunity Cost
Progressive tax
20. A purposeful course of action or purpose in life that generally provides income
Bankruptcy
Dumpster Diving
Career
Gross income
21. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Hacking
Bankruptcy
Copayment
Mortgage company
22. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Credit union
Gifts in-kind
Probability
Lease
23. A legal organization providing services or activities without commercial or monetary gain.
Nonprofit organization
Rate of Return
401 k
Credit Score/Rating
24. Costs paid when buying a house or real estate.
Closing Costs
Hacking
Premium
Rule of 72
25. A person or company to whom money is owed.
401 k
Creditor
Savings Accounts
Credit Card
26. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Premium
Debit card
Budget
Variable expenses
27. 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.
Credit
Fixed expenses
Interest
Mortgage
28. 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.
Progressive tax
Opportunity Cost
Rule of 72
Budget
29. A person who owns property and rents it to another.
Landlord
Budget
Rule of 72
Deductions
30. The original amount of money deposited or invested.
Opportunity Cost
Principal
Variable expenses
Dumpster Diving
31. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Expenses
Goal setting
Ethics
32. The chance that an investment has been misrepresented.
Tenant
Fraud Risk
Gifts in-kind
Nonprofit organization
33. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Income
Fraud
Copayment
Hacking
34. A bank or credit union account that allows withdrawals by writing a check.
Individual Retirement Account (IRA)
Checking account
Individual Retirement Account (IRA)
Tenant
35. 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
Consumer Credit Counseling
Mortgage company
Tax Deduction
36. 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.
Progressive tax
Rule of 72
Principal
Budget
37. The act of giving to charitable organizations or to those in need.
Gross income
Credit Bureau
Charitable Giving
Expenses
38. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Interest
Saving
Gambling
Income
39. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Nonprofit organization
Expenses
Income
Credit Score/Rating
40. 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.
Individual Retirement Account (IRA)
Mortgage
Lease
Net income
41. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Goal
Expenses
Income
401 k
42. Money earned from investments and employment.
Income
Consumer Credit Counseling
Interest
Progressive tax
43. 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.
Savings Accounts
Credit Score/Rating
Income
Variable expenses
44. A long-term loan to buy real estate including land and the structures on it.
Credit union
Opportunity Cost
Mortgage
Individual Retirement Account (IRA)
45. Someone who knowingly deceives you for their own personal gain.
Principal
Annuity
Fraud
Benefits-received principle
46. The original amount of money deposited or invested.
Net income
Income
Credit Score/Rating
Principal
47. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Rule of 72
Checking account
Deductions
48. The value of the second-best alternative that a person gives up when making one choice instead of another.
Deductible
Interest Rate
Opportunity Cost
Tax Deduction
49. A legal organization providing services or activities without commercial or monetary gain.
Income
Nonprofit organization
Gross income
Credit
50. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Deductible
Variable expenses
Checking account
Simple Interest