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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 financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Premium
Copayment
Income
2. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Reconcile
Social security
Bankruptcy
Budget
3. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Dumpster Diving
Nonprofit organization
Fixed expenses
Interest
4. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Tax Deduction
Reconcile
Goal setting
Credit Card
5. 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.
Simple Interest
Social security
Gifts in-kind
Credit union
6. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Opportunity Cost
Saving
Fixed expenses
Benefits-received principle
7. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Goal
Principal
Career
8. A purposeful course of action or purpose in life that generally provides income
Career
Mortgage
Fixed expenses
Premium
9. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Medicare
Copayment
Fraud Risk
Fixed expenses
10. A legal organization providing services or activities without commercial or monetary gain.
Lease
Rate of Return
Gifts in-kind
Nonprofit organization
11. How fast money in savings account or investment grows.
Gifts in-kind
Hacking
Closing Costs
Rate of Return
12. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Charitable Giving
Career
Interest Rate
Tax Deduction
13. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Credit Card
Gifts in-kind
Copayment
14. Costs paid when buying a house or real estate.
Credit
Principal
Closing Costs
Rate of Return
15. The chance or likelihood that something will happen.
Identity Theft
Probability
Mortgage
Coinsurance
16. A legal organization providing services or activities without commercial or monetary gain.
Hacking
Credit Report
Landlord
Nonprofit organization
17. A company that makes loans for the purchase of a house or other real estate.
Budget
Mortgage company
Saving
Premium
18. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Career
Tax Deduction
Gambling
Reconcile
19. A measure of the uncertainty of an investment's rate of return; possible losses.
Risk
Nonprofit organization
Income
Creditor
20. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Reconcile
Goal
Bankruptcy
Morals
21. Payment for the use of someone else's money
Interest
Benefits-received principle
Hacking
Gambling
22. A person who pays rent; the legal name for a renter.
Premium
Annuity
Progressive tax
Tenant
23. 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.
Dumpster Diving
Credit Card
Annuity
Hacking
24. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Debit card
Variable expenses
Gross income
Net income
25. A plastic card used to deduct a purchase amount directly from your checking account.
Mortgage company
Goal
Debit card
Opportunity Cost
26. 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.
Credit union
Mortgage
Dumpster Diving
Annuity
27. A plastic card used to deduct a purchase amount directly from your checking account.
Net income
Debit card
Interest
Progressive tax
28. Someone who knowingly deceives you for their own personal gain.
Interest
Mortgage
Progressive tax
Fraud
29. Anything subtracted from your gross income.
Deductible
Consumer Credit Counseling
Deductions
Coinsurance
30. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Debit card
Interest Rate
Fraud
Career
31. Costs paid when buying a house or real estate.
Closing Costs
Deductions
Interest Rate
Income
32. A set of principles or beliefs that govern an individual's actions.
Progressive tax
Fixed expenses
Ethics
Reconcile
33. 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
Charitable Giving
401 k
Saving
34. 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.
Gifts in-kind
Tax Deduction
Credit
Budget
35. A person who owns property and rents it to another.
Fixed expenses
Landlord
Fraud Risk
Lease
36. The percentage of the costs of medical services paid by the patient.
Coinsurance
Copayment
Copayment
Gambling
37. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Expenses
Net income
Savings Accounts
Mortgage
38. 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.
Identity Theft
Lease
Bankruptcy
Credit Score/Rating
39. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Tax Deduction
Goal setting
Probability
Dumpster Diving
40. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Fraud
Benefits-received principle
Budget
Simple Interest
41. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Checking account
Goal
Mortgage
Fixed expenses
42. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Fixed expenses
Rule of 72
Social security
Mortgage company
43. 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.
Rule of 72
Fraud Risk
Interest
Fraud Risk
44. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Landlord
Goal
Individual Retirement Account (IRA)
Social security
45. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Deductible
Expenses
Closing Costs
46. The value of the second-best alternative that a person gives up when making one choice instead of another.
Opportunity Cost
Simple Interest
Mortgage company
Gifts in-kind
47. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Mortgage
Check
Income
48. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Copayment
Closing Costs
Credit Card
Income
49. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Dumpster Diving
Credit Bureau
Variable expenses
Credit Card
50. A long-term loan to buy real estate including land and the structures on it.
Expenses
Mortgage
Check
Credit Score/Rating