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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 loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Social security
Rule of 72
Premium
Mortgage
2. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Bankruptcy
Savings Accounts
Tax Deduction
Gifts in-kind
3. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Savings Accounts
Credit
Individual Retirement Account (IRA)
Interest Rate
4. A non-cash contribution to a charitable organization which can be given a cash value.
Principal
Hacking
Gifts in-kind
Credit Report
5. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Credit Card
Tax Deduction
Credit Score/Rating
Fraud
6. 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.
401 k
Creditor
Credit Report
Fixed expenses
7. A purposeful course of action or purpose in life that generally provides income
Ethics
Career
Landlord
Credit Score/Rating
8. A person who pays rent; the legal name for a renter.
Tenant
Net income
Consumer Credit Counseling
Individual Retirement Account (IRA)
9. 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.
Gifts in-kind
Variable expenses
Budget
Nonprofit organization
10. How fast money in savings account or investment grows.
Interest Rate
Rate of Return
Progressive tax
Bankruptcy
11. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Nonprofit organization
Individual Retirement Account (IRA)
Interest Rate
Hacking
12. Taking risks with personal finances or personal assets
Gross income
Goal
401 k
Gambling
13. The original amount of money deposited or invested.
Principal
Saving
Mortgage company
Dumpster Diving
14. The original amount of money deposited or invested.
Expenses
Hacking
Income
Principal
15. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Variable expenses
Mortgage company
Mortgage
Annuity
16. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Credit
Coinsurance
Reconcile
Social security
17. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Interest
Check
Mortgage
Benefits-received principle
18. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Deductions
Variable expenses
Identity Theft
Check
19. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Variable expenses
Credit union
Deductible
Fraud
20. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Morals
Variable expenses
Probability
Expenses
21. A person or company to whom money is owed.
Hacking
Creditor
Mortgage
Savings Accounts
22. 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.
Charitable Giving
Credit Card
401 k
Ethics
23. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Net income
Income
Benefits-received principle
Lease
24. A company that makes loans for the purchase of a house or other real estate.
Fraud Risk
Closing Costs
Net income
Mortgage company
25. Taking risks with personal finances or personal assets
Interest Rate
Probability
Gambling
Risk
26. 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)
Coinsurance
401 k
Progressive tax
Morals
27. How fast money in savings account or investment grows.
Credit Score/Rating
Copayment
Rate of Return
Progressive tax
28. The chance that an investment has been misrepresented.
Credit Card
Simple Interest
Fraud Risk
Mortgage
29. The value of the second-best alternative that a person gives up when making one choice instead of another.
Identity Theft
Fixed expenses
Opportunity Cost
Hacking
30. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Lease
Credit
Career
Bankruptcy
31. Costs paid when buying a house or real estate.
Closing Costs
Fraud Risk
Social security
Mortgage
32. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Bankruptcy
Rule of 72
Interest Rate
Credit Score/Rating
33. 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.
Credit
Rule of 72
Premium
Savings Accounts
34. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Principal
Consumer Credit Counseling
Copayment
Creditor
35. A bank or credit union account that allows withdrawals by writing a check.
Premium
Lease
Mortgage company
Checking account
36. An establishment that collects and distributes credit history info. of individuals & business.
Medicare
Ethics
Mortgage
Credit Bureau
37. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Risk
Budget
Simple Interest
Goal
38. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Principal
Check
Tax Deduction
Consumer Credit Counseling
39. The chance or likelihood that something will happen.
Mortgage
Net income
Reconcile
Probability
40. A measure of the uncertainty of an investment's rate of return; possible losses.
Risk
Nonprofit organization
Social security
Fraud
41. The chance or likelihood that something will happen.
Tenant
Medicare
Probability
Credit Report
42. A bank or credit union account that allows withdrawals by writing a check.
Budget
Deductible
Mortgage
Checking account
43. Someone who knowingly deceives you for their own personal gain.
Coinsurance
Net income
Fraud
Morals
44. A company that makes loans for the purchase of a house or other real estate.
Interest
Expenses
Mortgage company
Gifts in-kind
45. Costs paid when buying a house or real estate.
Charitable Giving
Credit union
Income
Closing Costs
46. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Dumpster Diving
Identity Theft
Mortgage company
Premium
47. Money earned from investments and employment.
Benefits-received principle
Reconcile
Income
Morals
48. A set of principles or beliefs that govern an individual's actions.
Nonprofit organization
Gambling
Variable expenses
Ethics
49. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Annuity
Copayment
Credit Card
Ethics
50. 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)
Fraud Risk
Progressive tax
Premium
Goal setting