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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. Money earned from investments and employment.
Budget
Income
Fixed expenses
Reconcile
2. Money earned from investments and employment.
Rate of Return
Rule of 72
Income
Closing Costs
3. 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.
Net income
Expenses
Credit Score/Rating
Income
4. A set of principles or beliefs that govern an individual's actions.
Risk
Budget
Ethics
Closing Costs
5. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Consumer Credit Counseling
Charitable Giving
Variable expenses
Tax Deduction
6. The value of the second-best alternative that a person gives up when making one choice instead of another.
Savings Accounts
Opportunity Cost
Credit Card
Interest
7. An establishment that collects and distributes credit history info. of individuals & business.
Closing Costs
Credit Card
Fraud Risk
Credit Bureau
8. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Goal setting
Fraud
Credit Score/Rating
Debit card
9. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Income
Goal
Individual Retirement Account (IRA)
Creditor
10. The act of giving to charitable organizations or to those in need.
Consumer Credit Counseling
Morals
Identity Theft
Charitable Giving
11. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Rate of Return
Credit Card
Lease
Tax Deduction
12. A measure of the uncertainty of an investment's rate of return; possible losses.
Opportunity Cost
401 k
Risk
Gifts in-kind
13. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Fraud
Goal setting
Tax Deduction
Goal
14. 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.
Lease
Annuity
Morals
Simple Interest
15. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Variable expenses
Principal
Fraud
Lease
16. A purposeful course of action or purpose in life that generally provides income
Bankruptcy
Career
Goal setting
Copayment
17. 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 Report
Coinsurance
Copayment
Credit
18. 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.
Tax Deduction
Budget
Checking account
Credit Report
19. The percentage of the costs of medical services paid by the patient.
Credit
Copayment
Coinsurance
401 k
20. 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
Copayment
Consumer Credit Counseling
Credit Card
21. A legal organization providing services or activities without commercial or monetary gain.
Fixed expenses
Creditor
Nonprofit organization
Bankruptcy
22. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Interest
Gross income
Tenant
23. The act of giving to charitable organizations or to those in need.
Savings Accounts
Charitable Giving
Credit
Credit Score/Rating
24. A person who pays rent; the legal name for a renter.
Credit Report
Gambling
Income
Tenant
25. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Progressive tax
Credit
Creditor
26. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Credit union
Morals
Copayment
Medicare
27. A bank or credit union account that allows withdrawals by writing a check.
Annuity
Checking account
Credit Bureau
Deductible
28. An establishment that collects and distributes credit history info. of individuals & business.
Credit Bureau
Closing Costs
Simple Interest
Budget
29. 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.
Copayment
Lease
Simple Interest
Progressive tax
30. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Variable expenses
Credit Card
Principal
Opportunity Cost
31. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Credit
Income
Credit Bureau
Goal
32. Costs paid when buying a house or real estate.
Closing Costs
Deductible
Benefits-received principle
Probability
33. The original amount of money deposited or invested.
Consumer Credit Counseling
Creditor
Principal
Tenant
34. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Budget
Variable expenses
Identity Theft
Credit
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
Charitable Giving
Check
Risk
36. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Career
Medicare
Closing Costs
Premium
37. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Charitable Giving
Consumer Credit Counseling
Rate of Return
Variable 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.
Copayment
Tenant
Medicare
Saving
39. 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.
Career
Fixed expenses
Goal setting
Rule of 72
40. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Progressive tax
Individual Retirement Account (IRA)
Credit Score/Rating
Coinsurance
41. 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.
Annuity
Lease
Principal
Ethics
42. A purposeful course of action or purpose in life that generally provides income
Career
Credit Card
Simple Interest
Variable expenses
43. Someone who knowingly deceives you for their own personal gain.
Medicare
Fraud
Gifts in-kind
Credit union
44. 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.
Identity Theft
Medicare
Social security
Mortgage
45. 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
Income
Rate of Return
Debit card
46. 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
Risk
Morals
Mortgage
47. Payment for the use of someone else's money
Interest
Tax Deduction
Fraud Risk
Credit Card
48. The percentage of the costs of medical services paid by the patient.
Coinsurance
Bankruptcy
Closing Costs
Lease
49. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Gambling
Net income
Mortgage company
Checking account
50. Someone who knowingly deceives you for their own personal gain.
Fraud
Net income
Fixed expenses
Annuity