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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 bank or credit union account that allows withdrawals by writing a check.
Saving
Checking account
Consumer Credit Counseling
Gross income
2. A purposeful course of action or purpose in life that generally provides income
Career
Income
Fixed expenses
Debit card
3. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Benefits-received principle
Identity Theft
Social security
Income
4. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Copayment
Credit Score/Rating
Credit Score/Rating
Deductions
5. A measure of the uncertainty of an investment's rate of return; possible losses.
Benefits-received principle
Interest
Mortgage company
Risk
6. How fast money in savings account or investment grows.
Progressive tax
Rate of Return
Gross income
Credit
7. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Variable expenses
Saving
401 k
Consumer Credit Counseling
8. The fee paid for insurance protection.
Income
Gifts in-kind
Premium
Gross income
9. A non-cash contribution to a charitable organization which can be given a cash value.
Variable expenses
Progressive tax
Opportunity Cost
Gifts in-kind
10. Money earned from investments and employment.
Check
Interest Rate
Deductions
Income
11. A company that makes loans for the purchase of a house or other real estate.
Mortgage company
Fraud
Savings Accounts
Credit Card
12. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Individual Retirement Account (IRA)
Fixed expenses
Opportunity Cost
13. A person or company to whom money is owed.
Deductions
Creditor
Landlord
Fraud Risk
14. 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.
Fraud
Credit Report
Principal
Credit union
15. An establishment that collects and distributes credit history info. of individuals & business.
Lease
Credit Bureau
Mortgage
Rate of Return
16. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Mortgage
Identity Theft
Credit Card
Opportunity Cost
17. 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)
Progressive tax
Credit Bureau
Medicare
Consumer Credit Counseling
18. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Rate of Return
Dumpster Diving
Gifts in-kind
19. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Coinsurance
Opportunity Cost
Deductible
Fixed expenses
20. 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.
401 k
Tenant
Social security
Identity Theft
21. A long-term loan to buy real estate including land and the structures on it.
Deductible
Mortgage
Check
Check
22. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Mortgage company
Probability
Individual Retirement Account (IRA)
Mortgage
23. A legal organization providing services or activities without commercial or monetary gain.
Opportunity Cost
Interest
Identity Theft
Nonprofit organization
24. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Rule of 72
Career
Identity Theft
Expenses
25. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
401 k
Reconcile
Bankruptcy
Credit
26. 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.
Deductible
Credit Score/Rating
Savings Accounts
Medicare
27. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Charitable Giving
Medicare
Benefits-received principle
Interest
28. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Net income
Fraud
Risk
Morals
29. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Nonprofit organization
Bankruptcy
Credit Bureau
Fixed expenses
30. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Credit
Premium
Morals
Consumer Credit Counseling
31. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Mortgage
Expenses
Rate of Return
Simple Interest
32. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Closing Costs
Coinsurance
Benefits-received principle
Consumer Credit Counseling
33. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Goal setting
Simple Interest
Credit Card
Interest
34. A plastic card used to deduct a purchase amount directly from your checking account.
Ethics
Income
Debit card
Coinsurance
35. The value of the second-best alternative that a person gives up when making one choice instead of another.
Morals
Annuity
Opportunity Cost
Check
36. A person who owns property and rents it to another.
Checking account
Saving
Landlord
Credit union
37. A purposeful course of action or purpose in life that generally provides income
Career
Hacking
Saving
Lease
38. 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.
Goal setting
Rule of 72
Expenses
Credit Score/Rating
39. The act of giving to charitable organizations or to those in need.
401 k
Benefits-received principle
Charitable Giving
Nonprofit organization
40. 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.
Morals
Deductions
Goal
Credit
41. A person who pays rent; the legal name for a renter.
Social security
401 k
Tenant
Reconcile
42. The chance or likelihood that something will happen.
Probability
Interest Rate
Mortgage
Credit
43. 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)
Progressive tax
Bankruptcy
Mortgage company
Tax Deduction
44. The percentage of the costs of medical services paid by the patient.
Coinsurance
Charitable Giving
Credit Card
Credit Card
45. How fast money in savings account or investment grows.
Gifts in-kind
Rate of Return
Net income
Tenant
46. The original amount of money deposited or invested.
Principal
Career
Mortgage
Annuity
47. 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.
Copayment
Social security
Interest
Progressive tax
48. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Variable expenses
Credit union
Mortgage
Budget
49. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Charitable Giving
Goal
Tenant
Identity Theft
50. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Consumer Credit Counseling
Gross income
Morals
Fraud Risk