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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 long-term loan to buy real estate including land and the structures on it.
Reconcile
Mortgage
Income
Probability
2. The fee paid for insurance protection.
Career
401 k
Premium
Income
3. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Nonprofit organization
Fixed expenses
Bankruptcy
Consumer Credit Counseling
4. Wages or salary before deductions for taxes and other purposes.
Opportunity Cost
Gross income
Budget
Social security
5. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Morals
Gross income
Probability
Tax Deduction
6. A measure of the uncertainty of an investment's rate of return; possible losses.
Gambling
Progressive tax
Simple Interest
Risk
7. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Closing Costs
Gambling
Expenses
Bankruptcy
8. A measure of the uncertainty of an investment's rate of return; possible losses.
Credit Score/Rating
Risk
Interest
Gifts in-kind
9. 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.
Medicare
Budget
Mortgage
Individual Retirement Account (IRA)
10. A person who pays rent; the legal name for a renter.
Credit Score/Rating
Tenant
Expenses
Charitable Giving
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.
Fraud Risk
Dumpster Diving
Saving
Credit Report
12. The value of the second-best alternative that a person gives up when making one choice instead of another.
Fraud Risk
Tax Deduction
Bankruptcy
Opportunity Cost
13. The fee paid for insurance protection.
Check
Social security
Reconcile
Premium
14. Costs paid when buying a house or real estate.
Fraud
Variable expenses
Saving
Closing Costs
15. The act of giving to charitable organizations or to those in need.
Charitable Giving
Fixed expenses
Creditor
Interest
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.
Annuity
401 k
Mortgage company
Creditor
17. Taking risks with personal finances or personal assets
Gambling
Credit Card
Fraud Risk
Opportunity Cost
18. 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.
Creditor
Tenant
Interest Rate
Rule of 72
19. The act of giving to charitable organizations or to those in need.
Mortgage company
Charitable Giving
Progressive tax
Mortgage
20. A legal organization providing services or activities without commercial or monetary gain.
Nonprofit organization
Lease
Dumpster Diving
Variable expenses
21. 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)
Savings Accounts
Copayment
Progressive tax
Risk
22. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Savings Accounts
Benefits-received principle
Tax Deduction
Fraud Risk
23. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Variable expenses
Consumer Credit Counseling
Rule of 72
24. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Goal
Rule of 72
Medicare
25. An establishment that collects and distributes credit history info. of individuals & business.
Saving
Credit Bureau
Dumpster Diving
Benefits-received principle
26. A company that makes loans for the purchase of a house or other real estate.
Mortgage company
Creditor
Credit
Morals
27. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Mortgage company
Opportunity Cost
Variable expenses
Gifts in-kind
28. 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.
Fixed expenses
Lease
Mortgage
Budget
29. 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.
Savings Accounts
Rule of 72
Budget
Bankruptcy
30. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Opportunity Cost
Mortgage
Credit
Reconcile
31. A non-cash contribution to a charitable organization which can be given a cash value.
Gambling
Nonprofit organization
Gifts in-kind
Medicare
32. 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.
Lease
Rule of 72
Reconcile
Interest
33. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Benefits-received principle
Copayment
Opportunity Cost
Fraud Risk
34. A person or company to whom money is owed.
Credit Bureau
Tenant
Creditor
Dumpster Diving
35. Someone who knowingly deceives you for their own personal gain.
Fraud
Credit union
Career
Credit
36. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Benefits-received principle
Bankruptcy
Credit Card
Identity Theft
37. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Savings Accounts
Nonprofit organization
Closing Costs
Expenses
38. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Check
Hacking
Identity Theft
Charitable Giving
39. How fast money in savings account or investment grows.
Rate of Return
Annuity
Interest
Copayment
40. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Debit card
Bankruptcy
Mortgage company
Charitable Giving
41. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Net income
Ethics
Savings Accounts
Probability
42. A person who pays rent; the legal name for a renter.
Probability
Tenant
Net income
Deductible
43. 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.
401 k
Credit Score/Rating
Bankruptcy
Check
44. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Mortgage
Reconcile
Progressive tax
Fixed expenses
45. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Deductible
Credit union
Expenses
Consumer Credit Counseling
46. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Reconcile
Fraud Risk
Debit card
Interest Rate
47. The value of the second-best alternative that a person gives up when making one choice instead of another.
Landlord
Opportunity Cost
Probability
Career
48. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Credit Score/Rating
Ethics
Probability
Goal
49. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Social security
Morals
Budget
Debit card
50. 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
Budget
Copayment
Closing Costs