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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.
Income
Saving
Income
Goal setting
2. 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.
Check
Credit
Morals
Risk
3. A person who pays rent; the legal name for a renter.
Fraud Risk
Morals
Tenant
Deductions
4. An establishment that collects and distributes credit history info. of individuals & business.
Deductions
Credit Bureau
Fraud
Creditor
5. Payment for the use of someone else's money
Social security
Interest
Gambling
Annuity
6. An establishment that collects and distributes credit history info. of individuals & business.
Credit Bureau
Ethics
Interest Rate
Coinsurance
7. 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.
Simple Interest
Rule of 72
Dumpster Diving
Consumer Credit Counseling
8. A legal organization providing services or activities without commercial or monetary gain.
Morals
Mortgage company
Fraud
Nonprofit organization
9. 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
Savings Accounts
Deductible
Credit Report
10. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Reconcile
Credit Report
Tax Deduction
Rule of 72
11. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Credit Report
Identity Theft
Probability
Check
12. 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
Variable expenses
Credit Bureau
Income
13. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Nonprofit organization
Benefits-received principle
Consumer Credit Counseling
Rate of Return
14. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Risk
Credit union
Principal
Individual Retirement Account (IRA)
15. 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.
Lease
Goal setting
Interest Rate
Credit Score/Rating
16. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Medicare
Probability
Checking account
Gambling
17. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Premium
Copayment
Risk
Gross income
18. A set of principles or beliefs that govern an individual's actions.
Savings Accounts
Ethics
Income
Progressive tax
19. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Credit Score/Rating
Benefits-received principle
Reconcile
20. Wages or salary before deductions for taxes and other purposes.
Gross income
401 k
Hacking
Saving
21. 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
Hacking
Saving
Tenant
22. A person who pays rent; the legal name for a renter.
Tenant
Mortgage
Individual Retirement Account (IRA)
Goal setting
23. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Credit union
Rate of Return
Interest Rate
Income
24. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Deductible
Income
Tenant
Consumer Credit Counseling
25. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Morals
Mortgage
Rate of Return
Gross income
26. 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
Credit
Annuity
Charitable Giving
27. The value of the second-best alternative that a person gives up when making one choice instead of another.
Fraud
Dumpster Diving
Mortgage company
Opportunity Cost
28. 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
Coinsurance
Net income
Lease
29. 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)
Fixed expenses
Opportunity Cost
Premium
Progressive tax
30. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Deductions
Social security
Fraud Risk
Saving
31. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Interest Rate
Charitable Giving
Fraud
Fixed expenses
32. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Social security
Deductible
Dumpster Diving
Income
33. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Net income
Deductible
Career
Creditor
34. The act of giving to charitable organizations or to those in need.
Charitable Giving
Check
Income
Identity Theft
35. Costs paid when buying a house or real estate.
Medicare
Fixed expenses
Medicare
Closing Costs
36. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Probability
Net income
Credit Card
Credit Bureau
37. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Ethics
Dumpster Diving
Progressive tax
Fixed expenses
38. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Hacking
Checking account
Ethics
39. The percentage of the costs of medical services paid by the patient.
Rate of Return
Dumpster Diving
Identity Theft
Coinsurance
40. A plastic card used to deduct a purchase amount directly from your checking account.
Debit card
Social security
Goal setting
Reconcile
41. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Income
Morals
Closing Costs
Simple Interest
42. A non-cash contribution to a charitable organization which can be given a cash value.
Gambling
Expenses
Gifts in-kind
Savings Accounts
43. A company that makes loans for the purchase of a house or other real estate.
Mortgage company
Coinsurance
Fixed expenses
Rule of 72
44. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Nonprofit organization
Savings Accounts
Benefits-received principle
Individual Retirement Account (IRA)
45. The original amount of money deposited or invested.
Fraud
Principal
Nonprofit organization
Lease
46. 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
Credit Report
Reconcile
Lease
47. Money earned from investments and employment.
Social security
Debit card
Income
Risk
48. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Gross income
Goal setting
Debit card
Benefits-received principle
49. Money earned from investments and employment.
Income
Credit Card
Mortgage
Career
50. A long-term loan to buy real estate including land and the structures on it.
Bankruptcy
Copayment
Mortgage
Credit