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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. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Expenses
Principal
Consumer Credit Counseling
Saving
2. The fee paid for insurance protection.
Risk
Progressive tax
Individual Retirement Account (IRA)
Premium
3. 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)
Reconcile
Career
Progressive tax
Mortgage
4. Costs paid when buying a house or real estate.
Benefits-received principle
Income
Goal
Closing Costs
5. 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.
Medicare
Net income
401 k
Bankruptcy
6. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Individual Retirement Account (IRA)
Consumer Credit Counseling
Creditor
Deductions
7. A set of principles or beliefs that govern an individual's actions.
Hacking
Variable expenses
Ethics
Check
8. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Fraud Risk
Probability
Credit union
9. A person who owns property and rents it to another.
Progressive tax
Premium
Coinsurance
Landlord
10. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Goal
Credit Card
Mortgage
Variable expenses
11. 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.
Mortgage
Credit Report
Closing Costs
Debit card
12. 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
Variable expenses
Mortgage company
Benefits-received principle
13. 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
Premium
Mortgage
Savings Accounts
14. 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.
Credit
Progressive tax
401 k
Creditor
15. Money earned from investments and employment.
Bankruptcy
Premium
Income
Check
16. 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.
Identity Theft
Checking account
401 k
Ethics
17. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Hacking
Variable expenses
Progressive tax
Expenses
18. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Gross income
Hacking
Budget
Debit card
19. Taking risks with personal finances or personal assets
Gambling
Career
Bankruptcy
Fixed expenses
20. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Credit
Career
Deductions
Copayment
21. A long-term loan to buy real estate including land and the structures on it.
Mortgage
Hacking
Variable expenses
Premium
22. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Fraud Risk
Saving
Copayment
23. How fast money in savings account or investment grows.
Rate of Return
Credit Score/Rating
Nonprofit organization
Mortgage
24. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Fixed expenses
Dumpster Diving
Benefits-received principle
Debit card
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.
Rule of 72
Probability
Gross income
Mortgage
26. Money earned from investments and employment.
Hacking
Annuity
Income
401 k
27. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Interest Rate
Landlord
Goal
Progressive tax
28. Someone who knowingly deceives you for their own personal gain.
Reconcile
Hacking
Fraud
Gambling
29. A bank or credit union account that allows withdrawals by writing a check.
Credit
Checking account
Simple Interest
Goal
30. 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
Deductions
Premium
Lease
31. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Benefits-received principle
401 k
Coinsurance
Income
32. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Gifts in-kind
Tax Deduction
Deductible
Credit union
33. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Deductible
Goal setting
Identity Theft
Debit card
34. A person who owns property and rents it to another.
Landlord
401 k
Gambling
Deductible
35. A person or company to whom money is owed.
Credit
Landlord
Creditor
Opportunity Cost
36. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Goal
Rule of 72
Benefits-received principle
Mortgage
37. A set of principles or beliefs that govern an individual's actions.
Goal
Ethics
Simple Interest
Credit Card
38. A plastic card used to deduct a purchase amount directly from your checking account.
Gross income
Closing Costs
Tax Deduction
Debit card
39. A purposeful course of action or purpose in life that generally provides income
Opportunity Cost
Deductible
Rule of 72
Career
40. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Debit card
Deductions
Nonprofit organization
Check
41. A measure of the uncertainty of an investment's rate of return; possible losses.
Risk
Fraud Risk
Landlord
Lease
42. 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
Deductions
Nonprofit organization
Hacking
43. A non-cash contribution to a charitable organization which can be given a cash value.
Copayment
Bankruptcy
Gifts in-kind
Interest Rate
44. 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.
Credit
Credit union
Budget
Debit card
45. Anything subtracted from your gross income.
Deductions
Fraud Risk
Expenses
Goal
46. Wages or salary before deductions for taxes and other purposes.
Probability
Gross income
Rate of Return
Hacking
47. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Variable expenses
Gross income
Credit Bureau
Credit
48. A legal organization providing services or activities without commercial or monetary gain.
Landlord
Ethics
Tenant
Nonprofit organization
49. A long-term loan to buy real estate including land and the structures on it.
Variable expenses
Creditor
Nonprofit organization
Mortgage
50. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Checking account
Bankruptcy
Fixed expenses
Mortgage company