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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 plan for managing money & dividing up expected income and expenses among spending and saving options based on personal goals during a given time period.
Checking account
Budget
Consumer Credit Counseling
Mortgage
2. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Social security
Savings Accounts
Credit Report
Expenses
3. A person or company to whom money is owed.
Creditor
Gambling
Credit Report
Landlord
4. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Gifts in-kind
Creditor
Copayment
Goal
5. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Annuity
Benefits-received principle
Progressive tax
Goal
6. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Simple Interest
Deductions
Copayment
Credit union
7. A company that makes loans for the purchase of a house or other real estate.
Credit Report
Mortgage company
Goal
Reconcile
8. Costs paid when buying a house or real estate.
Opportunity Cost
Fraud Risk
Closing Costs
Deductions
9. 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.
Closing Costs
Credit
401 k
Morals
10. 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
Nonprofit organization
Social security
Credit Report
11. 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
Variable expenses
Risk
12. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Opportunity Cost
Net income
Copayment
Fixed expenses
13. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Expenses
Identity Theft
Deductible
Annuity
14. A set of principles or beliefs that govern an individual's actions.
Interest Rate
Credit Score/Rating
Debit card
Ethics
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.
Gross income
401 k
Bankruptcy
Credit Bureau
16. A non-cash contribution to a charitable organization which can be given a cash value.
Goal setting
Tax Deduction
Gifts in-kind
Risk
17. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Creditor
Bankruptcy
Premium
Goal
18. 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)
Goal
Goal setting
Progressive tax
Consumer Credit Counseling
19. A purposeful course of action or purpose in life that generally provides income
Income
Career
Landlord
Fraud
20. 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.
Annuity
Consumer Credit Counseling
Credit
Benefits-received principle
21. The fee paid for insurance protection.
Probability
Variable expenses
Income
Premium
22. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Savings Accounts
Net income
Saving
Reconcile
23. The percentage of the costs of medical services paid by the patient.
Coinsurance
Charitable Giving
Credit
Identity Theft
24. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Medicare
Fixed expenses
Individual Retirement Account (IRA)
Gambling
25. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Morals
Identity Theft
Mortgage
Savings Accounts
26. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Rate of Return
Check
Closing Costs
Benefits-received principle
27. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Consumer Credit Counseling
Mortgage company
Savings Accounts
Check
28. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Lease
Mortgage
Deductible
Nonprofit organization
29. A non-cash contribution to a charitable organization which can be given a cash value.
Rule of 72
Saving
Gifts in-kind
Reconcile
30. A person who owns property and rents it to another.
Net income
Landlord
Coinsurance
Tenant
31. 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.
Copayment
Annuity
Savings Accounts
Gifts in-kind
32. A measure of the uncertainty of an investment's rate of return; possible losses.
Risk
Check
401 k
Deductions
33. The act of giving to charitable organizations or to those in need.
Probability
Net income
Expenses
Charitable Giving
34. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Checking account
Dumpster Diving
Credit Score/Rating
35. 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.
Interest Rate
Fraud
Lease
Interest
36. Money earned from investments and employment.
Closing Costs
Savings Accounts
Income
Fixed expenses
37. The chance or likelihood that something will happen.
Deductible
Benefits-received principle
Probability
Mortgage
38. Taking risks with personal finances or personal assets
Fraud Risk
Gross income
Gambling
Tenant
39. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Fixed expenses
Risk
Social security
Consumer Credit Counseling
40. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Tax Deduction
Social security
Opportunity Cost
Check
41. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Rate of Return
Risk
Social security
42. 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 company
Net income
Reconcile
Closing Costs
43. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Ethics
Mortgage
Progressive tax
Premium
44. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Risk
Identity Theft
Credit Bureau
Goal setting
45. A legal organization providing services or activities without commercial or monetary gain.
Simple Interest
Dumpster Diving
Nonprofit organization
Credit Bureau
46. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Interest Rate
Annuity
Coinsurance
Tenant
47. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Goal
Simple Interest
401 k
48. Anything subtracted from your gross income.
Lease
Tax Deduction
Fraud Risk
Deductions
49. 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
Probability
Benefits-received principle
Variable expenses
50. 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.
Charitable Giving
Credit Score/Rating
Interest Rate
Rate of Return