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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. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Individual Retirement Account (IRA)
Opportunity Cost
Deductible
Individual Retirement Account (IRA)
2. A long-term loan to buy real estate including land and the structures on it.
Saving
Probability
Opportunity Cost
Mortgage
3. The value of the second-best alternative that a person gives up when making one choice instead of another.
Fraud
Tax Deduction
Opportunity Cost
Gifts in-kind
4. A company that makes loans for the purchase of a house or other real estate.
Credit Bureau
Mortgage company
Credit Report
Closing Costs
5. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Social security
Gambling
Savings Accounts
Mortgage
6. A person who pays rent; the legal name for a renter.
Savings Accounts
Interest
Lease
Tenant
7. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Coinsurance
Creditor
Individual Retirement Account (IRA)
Identity Theft
8. 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.
Mortgage
Check
Opportunity Cost
401 k
9. The chance or likelihood that something will happen.
Risk
Dumpster Diving
Credit
Probability
10. A long-term loan to buy real estate including land and the structures on it.
Interest
Credit Score/Rating
Mortgage
Variable expenses
11. Anything subtracted from your gross income.
Opportunity Cost
Saving
Deductions
Variable expenses
12. An establishment that collects and distributes credit history info. of individuals & business.
Credit Bureau
Creditor
Premium
Probability
13. A bank or credit union account that allows withdrawals by writing a check.
Credit Card
Checking account
Principal
Saving
14. The fee paid for insurance protection.
Gambling
Income
Deductions
Premium
15. A plastic card used to deduct a purchase amount directly from your checking account.
Debit card
Annuity
Interest
Hacking
16. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Fraud Risk
Identity Theft
Individual Retirement Account (IRA)
Consumer Credit Counseling
17. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Net income
Deductions
Dumpster Diving
Rate of Return
18. Payment for the use of someone else's money
Rate of Return
Benefits-received principle
Principal
Interest
19. A non-cash contribution to a charitable organization which can be given a cash value.
Checking account
Gifts in-kind
Hacking
Interest
20. The value of the second-best alternative that a person gives up when making one choice instead of another.
Credit Report
Deductions
Dumpster Diving
Opportunity Cost
21. 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.
Deductions
Budget
Net income
Deductions
22. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
401 k
Tax Deduction
Income
Credit union
23. 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.
Reconcile
Budget
Credit
Benefits-received principle
24. Someone who knowingly deceives you for their own personal gain.
Fraud
Rate of Return
Deductions
Creditor
25. 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.
Credit Score/Rating
Deductible
Expenses
Rule of 72
26. Money earned from investments and employment.
Ethics
401 k
Income
Variable expenses
27. A non-cash contribution to a charitable organization which can be given a cash value.
Hacking
Gifts in-kind
Debit card
Hacking
28. A set of principles or beliefs that govern an individual's actions.
Ethics
Mortgage
Rule of 72
Benefits-received principle
29. A person or company to whom money is owed.
Morals
Creditor
Checking account
Income
30. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Gifts in-kind
Tenant
Fixed expenses
Income
31. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Gifts in-kind
401 k
Lease
Credit Card
32. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Principal
Saving
Identity Theft
401 k
33. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Checking account
Dumpster Diving
Tenant
Variable expenses
34. Taking risks with personal finances or personal assets
Bankruptcy
Mortgage company
Gambling
Gifts in-kind
35. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Credit
Credit union
Progressive tax
Bankruptcy
36. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Goal
Bankruptcy
Benefits-received principle
Expenses
37. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Credit
Fixed expenses
Copayment
Creditor
38. 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.
Social security
Gifts in-kind
Variable expenses
Principal
39. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Deductible
Interest Rate
Premium
Rule of 72
40. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Check
Ethics
Fraud
Interest Rate
41. 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.
Saving
Hacking
Interest
Credit Score/Rating
42. 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.
Consumer Credit Counseling
Individual Retirement Account (IRA)
Lease
Fixed expenses
43. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Mortgage
Charitable Giving
Progressive tax
Gifts in-kind
44. Costs paid when buying a house or real estate.
Deductions
Expenses
Closing Costs
Credit Card
45. A purposeful course of action or purpose in life that generally provides income
Simple Interest
Deductible
Career
Check
46. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Credit union
Deductible
Gross income
Annuity
47. 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.
Budget
Credit
Credit Score/Rating
Savings Accounts
48. 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
Hacking
Morals
Simple Interest
49. 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.
Debit card
Reconcile
Rule of 72
Social security
50. Payment for the use of someone else's money
Income
Landlord
Interest
Identity Theft