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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. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Checking account
Tax Deduction
Reconcile
Income
2. 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
Expenses
Mortgage
Rate of Return
3. A person or company to whom money is owed.
Check
Coinsurance
Credit Report
Creditor
4. How fast money in savings account or investment grows.
Checking account
Opportunity Cost
Rate of Return
Benefits-received principle
5. Wages or salary before deductions for taxes and other purposes.
Gross income
Debit card
Nonprofit organization
Credit Card
6. 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
Consumer Credit Counseling
Debit card
Morals
7. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Saving
Rule of 72
Credit Card
Risk
8. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Bankruptcy
Consumer Credit Counseling
Identity Theft
Goal setting
9. 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.
Lease
Dumpster Diving
Probability
Credit
10. 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
Bankruptcy
Closing Costs
Interest
11. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Fixed expenses
Net income
Goal
Credit Card
12. 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.
Annuity
Interest Rate
Ethics
Coinsurance
13. The value of the second-best alternative that a person gives up when making one choice instead of another.
Charitable Giving
Probability
Opportunity Cost
Interest Rate
14. 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.
Credit Score/Rating
Income
Interest
Mortgage
15. Anything subtracted from your gross income.
Coinsurance
Tax Deduction
Gifts in-kind
Deductions
16. 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.
Dumpster Diving
Income
Credit Score/Rating
Principal
17. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Bankruptcy
Hacking
Income
Mortgage
18. The act of giving to charitable organizations or to those in need.
Savings Accounts
401 k
Charitable Giving
Medicare
19. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Progressive tax
Landlord
Goal setting
Rate of Return
20. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Creditor
Morals
Nonprofit organization
401 k
21. Costs paid when buying a house or real estate.
Closing Costs
Annuity
Reconcile
Morals
22. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Dumpster Diving
Income
Probability
401 k
23. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Credit union
Dumpster Diving
Reconcile
Simple Interest
24. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Principal
Mortgage company
Variable expenses
Closing Costs
25. A long-term loan to buy real estate including land and the structures on it.
Mortgage
401 k
Annuity
Landlord
26. A long-term loan to buy real estate including land and the structures on it.
Income
Principal
Mortgage
Goal setting
27. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Credit union
Interest Rate
Credit Card
Tenant
28. A legal organization providing services or activities without commercial or monetary gain.
Nonprofit organization
Premium
Dumpster Diving
Benefits-received principle
29. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Credit union
Interest Rate
Individual Retirement Account (IRA)
Income
30. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Credit
Closing Costs
Check
Reconcile
31. 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
Social security
Reconcile
Gifts in-kind
32. An establishment that collects and distributes credit history info. of individuals & business.
Principal
Charitable Giving
Credit Bureau
Fixed expenses
33. Someone who knowingly deceives you for their own personal gain.
Fraud
Probability
Check
Tax Deduction
34. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Landlord
Fraud Risk
Deductible
Savings Accounts
35. 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 Report
Income
Saving
401 k
36. The chance that an investment has been misrepresented.
Credit Report
Benefits-received principle
Hacking
Fraud Risk
37. A person who pays rent; the legal name for a renter.
Closing Costs
Dumpster Diving
Debit card
Tenant
38. Payment for the use of someone else's money
Interest
Hacking
Consumer Credit Counseling
Mortgage
39. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Fraud Risk
Net income
Bankruptcy
Credit union
40. A non-cash contribution to a charitable organization which can be given a cash value.
Lease
Gifts in-kind
Goal setting
Benefits-received principle
41. Money earned from investments and employment.
Gambling
Fraud
Income
Risk
42. The chance or likelihood that something will happen.
401 k
Probability
Annuity
Creditor
43. 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
Benefits-received principle
Bankruptcy
Budget
44. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Fixed expenses
Progressive tax
Copayment
Variable expenses
45. A legal organization providing services or activities without commercial or monetary gain.
Expenses
Charitable Giving
Nonprofit organization
Opportunity Cost
46. A person or company to whom money is owed.
Creditor
Identity Theft
Credit union
Check
47. Anything subtracted from your gross income.
Gross income
Principal
Fraud Risk
Deductions
48. An establishment that collects and distributes credit history info. of individuals & business.
Credit Report
Individual Retirement Account (IRA)
Credit Bureau
Reconcile
49. 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)
Coinsurance
Progressive tax
Simple Interest
Rate of Return
50. Wages or salary before deductions for taxes and other purposes.
Gross income
Social security
Interest
Tax Deduction