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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. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Morals
Variable expenses
Deductible
Fraud
2. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
401 k
Interest Rate
Savings Accounts
Copayment
3. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Bankruptcy
Income
Premium
Hacking
4. The chance that an investment has been misrepresented.
Coinsurance
Charitable Giving
Fraud Risk
Consumer Credit Counseling
5. Someone who knowingly deceives you for their own personal gain.
Interest
Credit Score/Rating
Income
Fraud
6. The act of giving to charitable organizations or to those in need.
Tenant
Creditor
Charitable Giving
Check
7. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Debit card
Interest
Rate of Return
8. Costs paid when buying a house or real estate.
Annuity
Savings Accounts
Morals
Closing Costs
9. The chance that an investment has been misrepresented.
Fraud Risk
Identity Theft
Interest
Hacking
10. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Deductions
Debit card
Expenses
Identity Theft
11. The fee paid for insurance protection.
Gross income
Premium
Variable expenses
Variable expenses
12. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Charitable Giving
Gross income
Medicare
Opportunity Cost
13. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Fraud Risk
Checking account
Check
Gambling
14. Wages or salary before deductions for taxes and other purposes.
Deductible
Gross income
Saving
Social security
15. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Fraud
Gambling
Probability
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.
Simple Interest
Progressive tax
401 k
Risk
17. A long-term loan to buy real estate including land and the structures on it.
Variable expenses
Risk
Mortgage
Goal setting
18. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Credit
Copayment
Benefits-received principle
19. 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.
Social security
Income
Probability
Annuity
20. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Tenant
Gambling
Mortgage
21. 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.
Social security
Closing Costs
Individual Retirement Account (IRA)
Credit
22. A purposeful course of action or purpose in life that generally provides income
Career
Mortgage company
Bankruptcy
Rule of 72
23. 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.
Individual Retirement Account (IRA)
Rate of Return
Nonprofit organization
Social security
24. A person or company to whom money is owed.
Expenses
Hacking
Creditor
Probability
25. 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
Deductions
Credit Report
Fraud Risk
26. A non-cash contribution to a charitable organization which can be given a cash value.
Dumpster Diving
Gambling
Gifts in-kind
Goal setting
27. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Check
Dumpster Diving
Individual Retirement Account (IRA)
Debit card
28. Money earned from investments and employment.
Benefits-received principle
Saving
Morals
Income
29. Anything subtracted from your gross income.
Deductions
Identity Theft
Charitable Giving
Interest Rate
30. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Mortgage
Fraud Risk
Dumpster Diving
Morals
31. 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
Gross income
Check
Career
32. 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 Bureau
Expenses
Credit Score/Rating
Goal setting
33. An establishment that collects and distributes credit history info. of individuals & business.
Credit Bureau
Income
Credit Score/Rating
Gross income
34. 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)
Annuity
Progressive tax
Deductible
Morals
35. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Fraud Risk
Goal setting
Medicare
36. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Morals
Rule of 72
Tax Deduction
Credit union
37. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Credit Bureau
Coinsurance
Individual Retirement Account (IRA)
Fraud
38. 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.
Rate of Return
Morals
Mortgage company
Rule of 72
39. A measure of the uncertainty of an investment's rate of return; possible losses.
Annuity
Risk
Dumpster Diving
Mortgage company
40. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Credit
Fraud
Individual Retirement Account (IRA)
Simple Interest
41. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Annuity
Progressive tax
Consumer Credit Counseling
42. Payment for the use of someone else's money
Interest
Tenant
Nonprofit organization
Simple Interest
43. The act of giving to charitable organizations or to those in need.
Charitable Giving
Progressive tax
Mortgage
Debit card
44. 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
Tenant
Coinsurance
Principal
45. A company that makes loans for the purchase of a house or other real estate.
Simple Interest
Mortgage company
Interest Rate
Saving
46. Someone who knowingly deceives you for their own personal gain.
Morals
Rule of 72
Fraud
Credit union
47. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Saving
Tax Deduction
Individual Retirement Account (IRA)
Career
48. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Income
Saving
Premium
Expenses
49. 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.
Checking account
Credit Score/Rating
Risk
Gambling
50. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Probability
Fixed expenses
Goal
Variable expenses