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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. How fast money in savings account or investment grows.
Copayment
Interest Rate
Rate of Return
Identity Theft
2. Costs paid when buying a house or real estate.
Premium
Net income
Income
Closing Costs
3. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Risk
Income
Medicare
Income
4. 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.
Landlord
Social security
Credit Card
Tenant
5. The percentage of the costs of medical services paid by the patient.
Coinsurance
Mortgage
Mortgage
Principal
6. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
401 k
Premium
Copayment
Credit Score/Rating
7. 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
Income
Ethics
Rule of 72
8. The value of the second-best alternative that a person gives up when making one choice instead of another.
Identity Theft
Gambling
Bankruptcy
Opportunity Cost
9. 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.
Benefits-received principle
Credit Bureau
Social security
Medicare
10. 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.
Creditor
401 k
Goal setting
Gifts in-kind
11. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Mortgage
Goal setting
Variable expenses
Gross income
12. 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 union
401 k
Income
Risk
13. The value of the second-best alternative that a person gives up when making one choice instead of another.
Charitable Giving
Ethics
Hacking
Opportunity Cost
14. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Expenses
Morals
Credit Card
Rate of Return
15. 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.
Debit card
Copayment
Budget
Savings Accounts
16. 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.
Income
Annuity
Creditor
Credit
17. The percentage of the costs of medical services paid by the patient.
Fixed expenses
Coinsurance
Credit Bureau
Charitable Giving
18. 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.
Principal
Copayment
Mortgage
Credit Report
19. A legal organization providing services or activities without commercial or monetary gain.
Income
Credit union
Nonprofit organization
Goal setting
20. A set of principles or beliefs that govern an individual's actions.
Credit Report
Ethics
Bankruptcy
Closing Costs
21. 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.
Debit card
Identity Theft
Tenant
Credit Score/Rating
22. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Income
Gross income
Gifts in-kind
Morals
23. A company that makes loans for the purchase of a house or other real estate.
Income
Mortgage company
Goal setting
Reconcile
24. Someone who knowingly deceives you for their own personal gain.
Fraud
Charitable Giving
Gifts in-kind
Premium
25. The chance that an investment has been misrepresented.
Fraud Risk
Creditor
Credit union
Premium
26. The fee paid for insurance protection.
Tenant
Probability
Lease
Premium
27. 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.
Credit Card
Lease
Mortgage
Copayment
28. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Credit Bureau
Rate of Return
Bankruptcy
Fraud Risk
29. A measure of the uncertainty of an investment's rate of return; possible losses.
Goal setting
Fraud
Opportunity Cost
Risk
30. A company that makes loans for the purchase of a house or other real estate.
Fraud Risk
Variable expenses
Mortgage company
Fixed expenses
31. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Mortgage
Coinsurance
Credit union
Fraud Risk
32. 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.
Expenses
Check
Budget
Rule of 72
33. Money earned from investments and employment.
Deductible
Tax Deduction
Income
Charitable Giving
34. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Mortgage
Savings Accounts
Net income
Closing Costs
35. An establishment that collects and distributes credit history info. of individuals & business.
Mortgage company
Fraud Risk
Credit Bureau
Benefits-received principle
36. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Mortgage
Simple Interest
Dumpster Diving
Reconcile
37. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Annuity
Hacking
Tax Deduction
38. An establishment that collects and distributes credit history info. of individuals & business.
Fraud
Premium
Tenant
Credit Bureau
39. A measure of the uncertainty of an investment's rate of return; possible losses.
Income
Risk
Check
Budget
40. A bank or credit union account that allows withdrawals by writing a check.
Identity Theft
Creditor
Gambling
Checking account
41. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Fraud Risk
Savings Accounts
Individual Retirement Account (IRA)
Career
42. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Interest Rate
Nonprofit organization
Goal setting
Simple Interest
43. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Saving
Credit Card
Premium
Rate of Return
44. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Goal setting
Consumer Credit Counseling
Fraud
Checking account
45. How fast money in savings account or investment grows.
Fixed expenses
Simple Interest
Credit Card
Rate of Return
46. A purposeful course of action or purpose in life that generally provides income
Credit Report
Net income
Interest
Career
47. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Premium
Premium
Income
48. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Credit Bureau
Fraud Risk
Identity Theft
Credit union
49. 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.
Income
Rule of 72
Lease
Medicare
50. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Savings Accounts
Dumpster Diving
Bankruptcy
Goal