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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. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Fraud Risk
Closing Costs
Credit Score/Rating
Saving
2. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Interest
Consumer Credit Counseling
Fraud Risk
Credit Card
3. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Hacking
Deductible
Identity Theft
Savings Accounts
4. The chance that an investment has been misrepresented.
Saving
Fraud Risk
Ethics
Medicare
5. 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.
Risk
Credit Report
Credit
Interest Rate
6. Wages or salary before deductions for taxes and other purposes.
Identity Theft
Gross income
Copayment
Career
7. How fast money in savings account or investment grows.
Deductible
Fixed expenses
Rate of Return
Annuity
8. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Career
Tenant
Nonprofit organization
Goal setting
9. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Copayment
Tax Deduction
Landlord
Career
10. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Fixed expenses
Progressive tax
Hacking
Checking account
11. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Creditor
Progressive tax
Mortgage
Savings Accounts
12. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Closing Costs
Nonprofit organization
Benefits-received principle
Medicare
13. The chance that an investment has been misrepresented.
Charitable Giving
Fraud Risk
Individual Retirement Account (IRA)
Creditor
14. Someone who knowingly deceives you for their own personal gain.
Consumer Credit Counseling
Coinsurance
Fraud
Simple Interest
15. 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.
Principal
Mortgage company
Net income
Lease
16. The chance or likelihood that something will happen.
Probability
Coinsurance
Lease
Rate of Return
17. The fee paid for insurance protection.
Tenant
Credit Score/Rating
Premium
Gifts in-kind
18. 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.
Individual Retirement Account (IRA)
Deductible
Annuity
Career
19. The percentage of the costs of medical services paid by the patient.
Coinsurance
Risk
Annuity
Career
20. A purposeful course of action or purpose in life that generally provides income
Fixed expenses
Career
Identity Theft
Principal
21. A person or company to whom money is owed.
Creditor
Probability
Gambling
Medicare
22. 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
Morals
Credit Score/Rating
Credit
23. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Checking account
Fixed expenses
Nonprofit organization
Copayment
24. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Budget
Closing Costs
Credit union
Career
25. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Charitable Giving
Progressive tax
Goal
Dumpster Diving
26. A person who pays rent; the legal name for a renter.
Gifts in-kind
Deductible
Opportunity Cost
Tenant
27. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Check
Fraud Risk
Premium
Individual Retirement Account (IRA)
28. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Social security
Progressive tax
Simple Interest
Tenant
29. A non-cash contribution to a charitable organization which can be given a cash value.
Gifts in-kind
Credit Score/Rating
Interest Rate
Gross income
30. A set of principles or beliefs that govern an individual's actions.
Tax Deduction
Ethics
Dumpster Diving
Saving
31. 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
Coinsurance
Income
Progressive tax
32. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Saving
Lease
Deductions
Fixed expenses
33. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Progressive tax
Simple Interest
Deductible
Probability
34. Wages or salary before deductions for taxes and other purposes.
Mortgage company
Checking account
Gross income
Debit card
35. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Premium
Identity Theft
Mortgage
Consumer Credit Counseling
36. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Fixed expenses
Credit Score/Rating
Reconcile
Debit card
37. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Closing Costs
Credit Report
Reconcile
Fraud
38. An establishment that collects and distributes credit history info. of individuals & business.
Individual Retirement Account (IRA)
Rule of 72
Medicare
Credit Bureau
39. 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.
Medicare
401 k
Income
Lease
40. 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
Net income
Credit Bureau
41. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Gross income
Savings Accounts
Principal
Deductible
42. 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.
Probability
Credit Score/Rating
Rule of 72
Reconcile
43. The act of giving to charitable organizations or to those in need.
Saving
Rule of 72
Charitable Giving
Gifts in-kind
44. The original amount of money deposited or invested.
Landlord
Gross income
Bankruptcy
Principal
45. Costs paid when buying a house or real estate.
Check
Copayment
Gifts in-kind
Closing Costs
46. 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.
Morals
Closing Costs
Saving
Credit Score/Rating
47. A long-term loan to buy real estate including land and the structures on it.
Fraud
Mortgage
Goal setting
Progressive tax
48. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Social security
Risk
Simple Interest
Net income
49. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Mortgage company
Credit
Landlord
Fixed expenses
50. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Nonprofit organization
Checking account
Credit Card
Principal