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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 fee paid for insurance protection.
Probability
Mortgage
Consumer Credit Counseling
Premium
2. A person who owns property and rents it to another.
Fixed expenses
Benefits-received principle
Landlord
Income
3. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Fraud Risk
Simple Interest
Benefits-received principle
401 k
4. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Checking account
Mortgage
Rule of 72
Simple Interest
5. Costs paid when buying a house or real estate.
Rate of Return
Fraud Risk
Closing Costs
Reconcile
6. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Probability
Budget
Tenant
Variable expenses
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.
Benefits-received principle
Expenses
401 k
Mortgage
8. 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
Annuity
Career
Probability
9. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Budget
Medicare
Creditor
Goal setting
10. A long-term loan to buy real estate including land and the structures on it.
Nonprofit organization
Mortgage
Morals
Goal setting
11. 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.
Progressive tax
Budget
Goal setting
Annuity
12. Money earned from investments and employment.
Income
Probability
Credit Card
Creditor
13. 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.
Goal setting
Rule of 72
Tax Deduction
Income
14. The value of the second-best alternative that a person gives up when making one choice instead of another.
Credit Report
Benefits-received principle
Opportunity Cost
Premium
15. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Savings Accounts
Simple Interest
Reconcile
Bankruptcy
16. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Deductions
Coinsurance
Charitable Giving
Benefits-received principle
17. 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)
Interest
Credit
Progressive tax
Rule of 72
18. A legal organization providing services or activities without commercial or monetary gain.
Nonprofit organization
Landlord
Ethics
Gross income
19. 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 Score/Rating
Credit union
Career
Fixed expenses
20. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Tax Deduction
Fixed expenses
Identity Theft
Risk
21. 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.
Net income
Lease
Simple Interest
Mortgage
22. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Creditor
Identity Theft
Career
Check
23. The fee paid for insurance protection.
Check
Morals
Credit Score/Rating
Premium
24. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Credit Bureau
Mortgage
Dumpster Diving
Fixed expenses
25. A plastic card used to deduct a purchase amount directly from your checking account.
Goal setting
Progressive tax
Net income
Debit card
26. A person or company to whom money is owed.
Simple Interest
Gambling
Credit Card
Creditor
27. Wages or salary before deductions for taxes and other purposes.
Medicare
Tenant
Gross income
Identity Theft
28. A person who pays rent; the legal name for a renter.
Tenant
Gambling
Consumer Credit Counseling
Opportunity Cost
29. A set of principles or beliefs that govern an individual's actions.
Deductions
Ethics
Mortgage
Closing Costs
30. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Expenses
Probability
Income
Creditor
31. 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.
Mortgage company
Creditor
Mortgage company
Rule of 72
32. 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
Debit card
Mortgage
Deductions
33. A company that makes loans for the purchase of a house or other real estate.
Income
Mortgage company
Rule of 72
Mortgage
34. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Charitable Giving
Progressive tax
Reconcile
Goal setting
35. Payment for the use of someone else's money
Principal
Risk
Interest
Credit Card
36. 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
Fixed expenses
Goal setting
Debit card
37. A person who pays rent; the legal name for a renter.
Progressive tax
Annuity
Tenant
Benefits-received principle
38. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Identity Theft
Rule of 72
Charitable Giving
Nonprofit organization
39. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Gross income
Credit
Saving
Credit union
40. How fast money in savings account or investment grows.
Credit
Risk
Rate of Return
Rule of 72
41. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Bankruptcy
Fraud
Deductible
Interest Rate
42. 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
Lease
Net income
Deductible
43. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Mortgage
Checking account
Credit Score/Rating
Lease
44. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Simple Interest
Coinsurance
Expenses
Interest
45. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Variable expenses
Expenses
Creditor
Individual Retirement Account (IRA)
46. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Mortgage
Copayment
Consumer Credit Counseling
Reconcile
47. Someone who knowingly deceives you for their own personal gain.
Individual Retirement Account (IRA)
Fraud
Nonprofit organization
Deductions
48. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Simple Interest
Individual Retirement Account (IRA)
Medicare
Interest
49. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Mortgage
Annuity
Tax Deduction
Annuity
50. A bank or credit union account that allows withdrawals by writing a check.
Credit Bureau
Gifts in-kind
Checking account
Variable expenses