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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 long-term loan to buy real estate including land and the structures on it.
Net income
Ethics
Checking account
Mortgage
2. The chance that an investment has been misrepresented.
Creditor
Closing Costs
Fraud Risk
Credit Report
3. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Opportunity Cost
Saving
Closing Costs
Gambling
4. 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.
Principal
Deductions
Budget
401 k
5. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Ethics
Interest Rate
Bankruptcy
Risk
6. 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
Mortgage
Lease
Credit
7. Anything subtracted from your gross income.
Deductions
Ethics
Consumer Credit Counseling
Income
8. A purposeful course of action or purpose in life that generally provides income
Coinsurance
Tenant
Career
Rate of Return
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.
Fraud
Budget
Morals
Income
10. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Gambling
Consumer Credit Counseling
Credit union
Deductible
11. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Identity Theft
Fixed expenses
Creditor
Credit
12. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Deductible
Mortgage
Charitable Giving
Credit Card
13. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Nonprofit organization
Reconcile
Credit Card
Morals
14. An establishment that collects and distributes credit history info. of individuals & business.
Opportunity Cost
Savings Accounts
Credit Bureau
Income
15. The act of giving to charitable organizations or to those in need.
Morals
Charitable Giving
Goal setting
Opportunity Cost
16. How fast money in savings account or investment grows.
Deductible
Fraud Risk
Progressive tax
Rate of Return
17. 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.
Opportunity Cost
Social security
Opportunity Cost
Credit Score/Rating
18. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Consumer Credit Counseling
Goal
Budget
Landlord
19. Someone who knowingly deceives you for their own personal gain.
Income
Gifts in-kind
Check
Fraud
20. The value of the second-best alternative that a person gives up when making one choice instead of another.
Saving
Deductions
Opportunity Cost
Copayment
21. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Credit Card
Expenses
Credit
Coinsurance
22. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Net income
Credit union
Expenses
Variable expenses
23. The fee paid for insurance protection.
Gross income
Consumer Credit Counseling
Premium
Mortgage
24. A purposeful course of action or purpose in life that generally provides income
Career
Opportunity Cost
Credit Bureau
Expenses
25. 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.
Rate of Return
Opportunity Cost
Fraud Risk
Credit Report
26. 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.
Budget
Deductible
Rule of 72
Charitable Giving
27. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Credit Report
Landlord
Individual Retirement Account (IRA)
28. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Risk
Saving
Reconcile
Creditor
29. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Goal
Simple Interest
Mortgage
Reconcile
30. 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)
Mortgage
Identity Theft
Progressive tax
Interest
31. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Credit Report
Medicare
Fixed expenses
Fraud Risk
32. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Credit Score/Rating
Mortgage company
Credit union
Saving
33. A legal organization providing services or activities without commercial or monetary gain.
Nonprofit organization
Credit Card
Individual Retirement Account (IRA)
Social security
34. A non-cash contribution to a charitable organization which can be given a cash value.
Ethics
Gifts in-kind
Risk
Nonprofit organization
35. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Rate of Return
Premium
Copayment
Premium
36. The chance or likelihood that something will happen.
Probability
Hacking
Gross income
Lease
37. The percentage of the costs of medical services paid by the patient.
Benefits-received principle
Coinsurance
Interest
Mortgage
38. Money earned from investments and employment.
Income
Fixed expenses
Saving
Gambling
39. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Progressive tax
Gross income
Check
Coinsurance
40. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Deductible
Identity Theft
Rate of Return
Rule of 72
41. Wages or salary before deductions for taxes and other purposes.
Social security
Hacking
Credit Report
Gross income
42. Anything subtracted from your gross income.
Copayment
Deductions
Progressive tax
Lease
43. A bank or credit union account that allows withdrawals by writing a check.
Risk
Credit Bureau
Checking account
Deductions
44. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Credit Bureau
Deductions
Annuity
Morals
45. 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.
Individual Retirement Account (IRA)
Landlord
Rule of 72
Budget
46. The fee paid for insurance protection.
Opportunity Cost
Premium
Income
Social security
47. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Simple Interest
Creditor
Credit Score/Rating
48. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Progressive tax
Simple Interest
Deductible
Credit Report
49. A company that makes loans for the purchase of a house or other real estate.
Credit Bureau
Principal
Hacking
Mortgage company
50. Money earned from investments and employment.
Morals
Income
Probability
Fixed expenses