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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. Wages or salary before deductions for taxes and other purposes.
Closing Costs
Gross income
Landlord
Credit Score/Rating
2. 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.
Morals
Deductible
Social security
Credit Report
3. The value of the second-best alternative that a person gives up when making one choice instead of another.
Reconcile
Opportunity Cost
Gross income
Annuity
4. A purposeful course of action or purpose in life that generally provides income
Career
Interest Rate
Opportunity Cost
Net income
5. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Career
Tax Deduction
Credit Card
Interest
6. Someone who knowingly deceives you for their own personal gain.
Credit Score/Rating
Interest
Fraud
Credit
7. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Bankruptcy
Bankruptcy
Credit union
Risk
8. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Income
Identity Theft
Morals
Individual Retirement Account (IRA)
9. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Goal
Tax Deduction
Net income
Social security
10. A person who owns property and rents it to another.
Landlord
Consumer Credit Counseling
Annuity
Gifts in-kind
11. Payment for the use of someone else's money
Rate of Return
Interest
Ethics
Checking account
12. 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
Premium
Debit card
13. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Mortgage
Opportunity Cost
Hacking
Consumer Credit Counseling
14. 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
Mortgage
Saving
Expenses
15. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Interest Rate
Risk
Rule of 72
16. The chance that an investment has been misrepresented.
Fraud Risk
Checking account
Career
Saving
17. A set of principles or beliefs that govern an individual's actions.
Mortgage
Lease
Ethics
Individual Retirement Account (IRA)
18. A non-cash contribution to a charitable organization which can be given a cash value.
Credit Score/Rating
Gifts in-kind
Consumer Credit Counseling
Opportunity Cost
19. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Copayment
Mortgage
Checking account
Expenses
20. 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)
Goal
Goal setting
Progressive tax
Deductible
21. 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.
Fraud
Progressive tax
Annuity
Gambling
22. 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.
Bankruptcy
Consumer Credit Counseling
Credit
Budget
23. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Saving
Deductions
Income
Gambling
24. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Rule of 72
Variable expenses
Fixed expenses
Copayment
25. 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.
Principal
Dumpster Diving
Medicare
Social security
26. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Nonprofit organization
Creditor
Fixed expenses
Morals
27. 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
Rate of Return
Opportunity Cost
Hacking
28. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Income
Identity Theft
Probability
Copayment
29. The act of giving to charitable organizations or to those in need.
Expenses
Charitable Giving
Credit union
Mortgage
30. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Lease
Opportunity Cost
Savings Accounts
Variable expenses
31. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Fraud
Net income
Interest
Risk
32. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Interest Rate
Social security
Savings Accounts
Tenant
33. A bank or credit union account that allows withdrawals by writing a check.
Medicare
Checking account
Credit Score/Rating
Coinsurance
34. A measure of the uncertainty of an investment's rate of return; possible losses.
Deductible
Saving
Risk
Mortgage
35. The act of giving to charitable organizations or to those in need.
Dumpster Diving
Rule of 72
Charitable Giving
Gifts in-kind
36. A company that makes loans for the purchase of a house or other real estate.
Net income
Mortgage company
Saving
Gambling
37. The chance or likelihood that something will happen.
Hacking
Medicare
Mortgage
Probability
38. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Charitable Giving
Tax Deduction
Morals
Budget
39. A legal organization providing services or activities without commercial or monetary gain.
Gambling
Landlord
Nonprofit organization
Dumpster Diving
40. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Nonprofit organization
Landlord
Social security
Income
41. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Rate of Return
Goal setting
Interest Rate
Saving
42. Payment for the use of someone else's money
Bankruptcy
Premium
Interest
Creditor
43. The fee paid for insurance protection.
Gross income
Premium
Bankruptcy
Nonprofit organization
44. 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.
Goal setting
Charitable Giving
Rule of 72
401 k
45. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Consumer Credit Counseling
Mortgage
Savings Accounts
Hacking
46. A person who pays rent; the legal name for a renter.
401 k
Tenant
Gambling
Saving
47. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Mortgage company
Credit Report
Opportunity Cost
48. A plastic card used to deduct a purchase amount directly from your checking account.
Simple Interest
Interest Rate
Debit card
Risk
49. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Probability
Simple Interest
Credit Score/Rating
Mortgage
50. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Mortgage
Hacking
Rate of Return
Deductible