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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 statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Nonprofit organization
Deductible
Goal
Credit union
2. 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.
Reconcile
Credit Bureau
Social security
Consumer Credit Counseling
3. A legal organization providing services or activities without commercial or monetary gain.
Credit union
Gross income
Risk
Nonprofit organization
4. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Individual Retirement Account (IRA)
Simple Interest
Variable expenses
Risk
5. Taking risks with personal finances or personal assets
Landlord
Gambling
Landlord
Goal setting
6. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Fraud
Expenses
Gambling
Consumer Credit Counseling
7. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Variable expenses
Tax Deduction
Deductible
Nonprofit organization
8. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Bankruptcy
Mortgage
Progressive tax
Deductions
9. The fee paid for insurance protection.
Deductible
Premium
Social security
Medicare
10. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Credit
Identity Theft
Check
Career
11. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Nonprofit organization
Income
Simple Interest
Charitable Giving
12. Wages or salary before deductions for taxes and other purposes.
Bankruptcy
Gross income
Dumpster Diving
Expenses
13. 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.
Morals
Mortgage
Credit
Annuity
14. The chance or likelihood that something will happen.
Credit Report
Mortgage
Probability
Tax Deduction
15. 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)
Bankruptcy
Tenant
Progressive tax
Deductible
16. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Variable expenses
401 k
Principal
Charitable Giving
17. 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.
Check
401 k
Interest
Tax Deduction
18. Wages or salary before deductions for taxes and other purposes.
Debit card
Mortgage company
Social security
Gross income
19. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Opportunity Cost
Fraud Risk
Mortgage
20. An establishment that collects and distributes credit history info. of individuals & business.
Tenant
Landlord
Lease
Credit Bureau
21. How fast money in savings account or investment grows.
Simple Interest
Copayment
Landlord
Rate of Return
22. Payment for the use of someone else's money
Copayment
Interest
Savings Accounts
Goal
23. The act of giving to charitable organizations or to those in need.
Charitable Giving
Credit Score/Rating
Landlord
Gambling
24. A person or company to whom money is owed.
Creditor
Interest Rate
Charitable Giving
Mortgage
25. The value of the second-best alternative that a person gives up when making one choice instead of another.
Opportunity Cost
Annuity
Credit Report
Mortgage
26. 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.
Goal setting
Deductible
Credit Report
Medicare
27. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Saving
Credit Card
Bankruptcy
Progressive tax
28. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Probability
Principal
Landlord
Saving
29. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Mortgage company
Probability
Consumer Credit Counseling
Income
30. A plastic card used to deduct a purchase amount directly from your checking account.
Debit card
Credit
Savings Accounts
Rule of 72
31. 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
Dumpster Diving
Interest
Check
32. A purposeful course of action or purpose in life that generally provides income
Expenses
Career
Medicare
Rate of Return
33. The act of giving to charitable organizations or to those in need.
Morals
Progressive tax
Charitable Giving
Credit Card
34. Payment for the use of someone else's money
Interest
Mortgage
Budget
Credit Score/Rating
35. The chance that an investment has been misrepresented.
Interest
Fraud Risk
Net income
Budget
36. The fee paid for insurance protection.
Goal
Bankruptcy
Premium
Probability
37. 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.
Morals
Check
Reconcile
Credit
38. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Debit card
Principal
Simple Interest
Closing Costs
39. A non-cash contribution to a charitable organization which can be given a cash value.
Consumer Credit Counseling
Gifts in-kind
Deductions
Identity Theft
40. 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 company
Social security
Opportunity Cost
41. 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
Rule of 72
Deductible
Bankruptcy
42. A person who owns property and rents it to another.
Debit card
Net income
Credit Score/Rating
Landlord
43. Anything subtracted from your gross income.
Deductions
Creditor
Credit Bureau
Probability
44. 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
Closing Costs
Identity Theft
Creditor
45. The chance or likelihood that something will happen.
Debit card
Variable expenses
Probability
Savings Accounts
46. The value of the second-best alternative that a person gives up when making one choice instead of another.
Consumer Credit Counseling
Opportunity Cost
Fraud Risk
Charitable Giving
47. 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
Credit Score/Rating
Budget
Premium
48. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Hacking
Check
Rate of Return
Expenses
49. The original amount of money deposited or invested.
Consumer Credit Counseling
Principal
Expenses
Credit
50. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Individual Retirement Account (IRA)
Debit card
Fixed expenses
Gambling