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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.
Gifts in-kind
Gross income
Creditor
Risk
2. Someone who knowingly deceives you for their own personal gain.
Budget
Principal
Fraud
Benefits-received principle
3. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Variable expenses
Savings Accounts
Opportunity Cost
Ethics
4. How fast money in savings account or investment grows.
Rate of Return
Credit union
Charitable Giving
Tenant
5. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Identity Theft
Income
Checking account
Net income
6. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Dumpster Diving
Reconcile
Debit card
Rule of 72
7. 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.
Progressive tax
401 k
Career
Risk
8. The value of the second-best alternative that a person gives up when making one choice instead of another.
Charitable Giving
Opportunity Cost
Career
Variable expenses
9. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Identity Theft
Net income
Bankruptcy
Gifts in-kind
10. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Principal
Goal
Closing Costs
Copayment
11. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Career
Gross income
Premium
Morals
12. The chance or likelihood that something will happen.
Annuity
Net income
Probability
Rule of 72
13. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Deductible
Mortgage
Dumpster Diving
Fraud Risk
14. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Annuity
Consumer Credit Counseling
Risk
Hacking
15. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Medicare
Budget
Annuity
Deductions
16. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Expenses
Credit union
Bankruptcy
Deductible
17. A non-cash contribution to a charitable organization which can be given a cash value.
Deductions
Gifts in-kind
Savings Accounts
Rate of Return
18. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
401 k
Medicare
Deductible
Goal
19. A long-term loan to buy real estate including land and the structures on it.
Mortgage
Deductible
Individual Retirement Account (IRA)
Credit union
20. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Mortgage
Interest Rate
Rule of 72
Gross income
21. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Principal
Credit Bureau
Saving
Gambling
22. A non-cash contribution to a charitable organization which can be given a cash value.
Income
Interest Rate
Deductible
Gifts in-kind
23. Someone who knowingly deceives you for their own personal gain.
Debit card
Fraud
Rule of 72
Simple Interest
24. 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.
Reconcile
Tax Deduction
Annuity
Interest Rate
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.
Fraud Risk
Rule of 72
Income
Variable expenses
26. A person who owns property and rents it to another.
Fraud
Income
Landlord
Career
27. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Identity Theft
Tenant
Credit Score/Rating
Tax Deduction
28. Payment for the use of someone else's money
Goal
Interest
Lease
Reconcile
29. A plastic card used to deduct a purchase amount directly from your checking account.
Debit card
Ethics
Annuity
Consumer Credit Counseling
30. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Credit union
Medicare
Variable expenses
Individual Retirement Account (IRA)
31. A set of principles or beliefs that govern an individual's actions.
Ethics
Check
Consumer Credit Counseling
Creditor
32. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Credit Score/Rating
Mortgage
Charitable Giving
Goal setting
33. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Rate of Return
Benefits-received principle
Landlord
Individual Retirement Account (IRA)
34. 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.
Lease
Tenant
Mortgage
Creditor
35. 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.
Closing Costs
Credit Score/Rating
Ethics
Gifts in-kind
36. Costs paid when buying a house or real estate.
Gross income
Check
Net income
Closing Costs
37. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Dumpster Diving
Interest Rate
Gross income
Medicare
38. An establishment that collects and distributes credit history info. of individuals & business.
Net income
Credit Bureau
Interest
Gifts in-kind
39. A person or company to whom money is owed.
Creditor
Coinsurance
Savings Accounts
Tax Deduction
40. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Copayment
Landlord
Fraud
41. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Checking account
Dumpster Diving
Mortgage company
42. A purposeful course of action or purpose in life that generally provides income
Credit Score/Rating
Career
Bankruptcy
Budget
43. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Savings Accounts
Morals
Mortgage
Identity Theft
44. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Simple Interest
Mortgage company
Risk
Dumpster Diving
45. Money earned from investments and employment.
Income
Medicare
Closing Costs
Reconcile
46. The percentage of the costs of medical services paid by the patient.
Coinsurance
Charitable Giving
Debit card
Income
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.
Identity Theft
Budget
Credit union
Career
48. A measure of the uncertainty of an investment's rate of return; possible losses.
Risk
Mortgage
Individual Retirement Account (IRA)
Opportunity Cost
49. The fee paid for insurance protection.
Premium
Identity Theft
Mortgage company
Net income
50. A person who pays rent; the legal name for a renter.
Savings Accounts
Tenant
Principal
Creditor