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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 purposeful course of action or purpose in life that generally provides income
Career
Premium
Credit
Copayment
2. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Rule of 72
Interest
Credit Bureau
Savings Accounts
3. A person who pays rent; the legal name for a renter.
Credit union
Deductions
Rate of Return
Tenant
4. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Gross income
Consumer Credit Counseling
Deductible
Closing Costs
5. 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.
Simple Interest
Annuity
Gross income
Consumer Credit Counseling
6. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tenant
Tax Deduction
Individual Retirement Account (IRA)
Ethics
7. The chance that an investment has been misrepresented.
Credit Report
Check
Annuity
Fraud Risk
8. The chance that an investment has been misrepresented.
Fraud Risk
Coinsurance
Fraud
Tax Deduction
9. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Identity Theft
Checking account
401 k
Progressive tax
10. A person or company to whom money is owed.
Creditor
Landlord
Rule of 72
Reconcile
11. 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.
Budget
Charitable Giving
Progressive tax
Mortgage
12. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Rule of 72
Goal
Premium
Income
13. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Bankruptcy
Mortgage
Simple Interest
Tenant
14. 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.
Tenant
Credit Card
Credit Score/Rating
Expenses
15. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Debit card
Hacking
Fraud Risk
Goal setting
16. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Credit
Income
Credit Card
Fraud Risk
17. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Credit union
Variable expenses
Debit card
Consumer Credit Counseling
18. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Medicare
Premium
Income
Deductions
19. Someone who knowingly deceives you for their own personal gain.
Net income
Fraud
Deductions
Closing Costs
20. 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
Annuity
Rule of 72
Mortgage
21. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Goal setting
Charitable Giving
Credit Report
22. A person or company to whom money is owed.
Fraud
Creditor
Risk
Saving
23. A person who owns property and rents it to another.
Landlord
Premium
Ethics
Charitable Giving
24. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Credit union
Goal
Charitable Giving
Rate of Return
25. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Credit Score/Rating
Ethics
Consumer Credit Counseling
Deductions
26. The fee paid for insurance protection.
Mortgage
Social security
Premium
Ethics
27. The fee paid for insurance protection.
Premium
Charitable Giving
Credit Bureau
Credit Card
28. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Savings Accounts
Morals
Mortgage
Credit Report
29. The value of the second-best alternative that a person gives up when making one choice instead of another.
Credit Card
Opportunity Cost
Rule of 72
Credit
30. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Principal
Expenses
Tax Deduction
Social security
31. A plastic card used to deduct a purchase amount directly from your checking account.
Debit card
Hacking
Charitable Giving
Interest Rate
32. Wages or salary before deductions for taxes and other purposes.
Lease
Gross income
Identity Theft
Gambling
33. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Interest Rate
Saving
Interest Rate
Morals
34. A bank or credit union account that allows withdrawals by writing a check.
Goal setting
Coinsurance
Checking account
Deductions
35. A legal organization providing services or activities without commercial or monetary gain.
Risk
Annuity
Goal
Nonprofit organization
36. A company that makes loans for the purchase of a house or other real estate.
Mortgage company
Principal
Reconcile
Copayment
37. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Saving
Mortgage
Benefits-received principle
Social security
38. 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
Deductions
Hacking
Mortgage
39. Payment for the use of someone else's money
401 k
Credit Score/Rating
Deductions
Interest
40. The chance or likelihood that something will happen.
Probability
Credit union
Credit Score/Rating
Opportunity Cost
41. Money earned from investments and employment.
Net income
Fraud Risk
Income
Lease
42. Someone who knowingly deceives you for their own personal gain.
Charitable Giving
Fraud
Saving
Deductible
43. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Rule of 72
Mortgage
Check
Fraud
44. An establishment that collects and distributes credit history info. of individuals & business.
Credit Bureau
Net income
Mortgage
Gambling
45. A long-term loan to buy real estate including land and the structures on it.
Creditor
Mortgage
Fixed expenses
Tax Deduction
46. Taking risks with personal finances or personal assets
Hacking
Risk
Identity Theft
Gambling
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.
Variable expenses
Social security
Check
Consumer Credit Counseling
48. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Rate of Return
Morals
Ethics
49. Payment for the use of someone else's money
Income
Career
Consumer Credit Counseling
Interest
50. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Deductions
Charitable Giving
Morals
Goal setting