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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. Costs paid when buying a house or real estate.
Expenses
Credit union
Progressive tax
Closing Costs
2. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Bankruptcy
Goal setting
Simple Interest
Expenses
3. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Expenses
Goal setting
Credit Bureau
Credit Card
4. Taking risks with personal finances or personal assets
Rate of Return
Fixed expenses
Gambling
Net income
5. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Fraud Risk
Credit Report
Budget
6. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Goal
Variable expenses
Rule of 72
Hacking
7. Someone who knowingly deceives you for their own personal gain.
Check
Bankruptcy
Fraud Risk
Fraud
8. A company that makes loans for the purchase of a house or other real estate.
Mortgage company
Rule of 72
Copayment
Mortgage
9. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Dumpster Diving
Reconcile
Morals
10. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Annuity
Simple Interest
Ethics
Charitable Giving
11. Someone who knowingly deceives you for their own personal gain.
Fraud
Credit
Tax Deduction
Saving
12. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Credit Report
Mortgage company
Hacking
Copayment
13. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Income
Tenant
Morals
Credit Card
14. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Reconcile
Simple Interest
Goal setting
Fraud
15. 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.
Goal
Expenses
401 k
Gross income
16. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Progressive tax
Reconcile
Opportunity Cost
Benefits-received principle
17. Anything subtracted from your gross income.
Individual Retirement Account (IRA)
Goal setting
Deductions
Debit card
18. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Tenant
Credit Card
Mortgage
Saving
19. 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 Card
Expenses
Credit Report
Saving
20. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Tenant
Deductible
Credit Bureau
Savings Accounts
21. A company that makes loans for the purchase of a house or other real estate.
Fraud
Copayment
Mortgage company
Expenses
22. A long-term loan to buy real estate including land and the structures on it.
Mortgage
Credit Bureau
Lease
Budget
23. Money earned from investments and employment.
Income
Individual Retirement Account (IRA)
Credit Score/Rating
Debit card
24. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Tax Deduction
Fraud Risk
Rate of Return
Income
25. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Goal
Deductions
Credit union
Rule of 72
26. The fee paid for insurance protection.
401 k
Credit Card
Budget
Premium
27. A legal organization providing services or activities without commercial or monetary gain.
Nonprofit organization
Deductible
Risk
Annuity
28. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Rule of 72
401 k
Medicare
Gifts in-kind
29. 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
Check
Rule of 72
Mortgage
30. 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.
Saving
Budget
Savings Accounts
Credit Report
31. A purposeful course of action or purpose in life that generally provides income
Nonprofit organization
Check
Career
Saving
32. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Individual Retirement Account (IRA)
Gross income
Credit Report
Goal setting
33. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Deductions
Credit Report
Reconcile
Goal setting
34. A measure of the uncertainty of an investment's rate of return; possible losses.
Benefits-received principle
Progressive tax
Ethics
Risk
35. 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.
Savings Accounts
Interest
Rule of 72
Gambling
36. An establishment that collects and distributes credit history info. of individuals & business.
Credit Bureau
Copayment
Tenant
Debit card
37. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Dumpster Diving
Variable expenses
Lease
Coinsurance
38. The value of the second-best alternative that a person gives up when making one choice instead of another.
Opportunity Cost
401 k
Income
Tax Deduction
39. A person or company to whom money is owed.
Closing Costs
Credit Score/Rating
Individual Retirement Account (IRA)
Creditor
40. Anything subtracted from your gross income.
Saving
Saving
Rule of 72
Deductions
41. A set of principles or beliefs that govern an individual's actions.
Credit Card
Closing Costs
Consumer Credit Counseling
Ethics
42. 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
Interest Rate
Variable expenses
43. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Progressive tax
Credit union
Tax Deduction
Saving
44. The fee paid for insurance protection.
Hacking
Ethics
Premium
Credit Score/Rating
45. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Variable expenses
Coinsurance
Goal
Closing Costs
46. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Variable expenses
Reconcile
Opportunity Cost
Goal
47. A person who owns property and rents it to another.
Budget
Opportunity Cost
Landlord
Charitable Giving
48. Money earned from investments and employment.
Gross income
Check
Savings Accounts
Income
49. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Fraud Risk
Goal
Probability
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)
Progressive tax
Goal
Deductible
Credit Score/Rating