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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.
Bankruptcy
Goal setting
Identity Theft
Mortgage
2. A bank or credit union account that allows withdrawals by writing a check.
Progressive tax
Morals
Checking account
Premium
3. 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.
Income
Mortgage
Social security
Budget
4. The chance that an investment has been misrepresented.
Saving
Fraud Risk
Medicare
Identity Theft
5. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Medicare
Check
Charitable Giving
Identity Theft
6. 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
Income
Creditor
7. 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.
Income
Savings Accounts
Credit Score/Rating
Credit
8. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Savings Accounts
Savings Accounts
Opportunity Cost
Deductible
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
Ethics
Lease
Mortgage
10. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Income
Premium
Opportunity Cost
Variable expenses
11. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Credit union
Variable expenses
Savings Accounts
Mortgage
12. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Opportunity Cost
Identity Theft
Dumpster Diving
Deductions
13. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Simple Interest
Fraud
Credit Report
Rule of 72
14. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Gambling
Fraud
Tax Deduction
Income
15. Anything subtracted from your gross income.
Closing Costs
Tenant
Medicare
Deductions
16. A person who owns property and rents it to another.
Landlord
Principal
Premium
Identity Theft
17. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Interest
Tenant
Individual Retirement Account (IRA)
Mortgage
18. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Benefits-received principle
Debit card
Interest Rate
Simple Interest
19. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Bankruptcy
Gifts in-kind
Income
Gross income
20. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Expenses
Reconcile
Morals
Risk
21. A person who pays rent; the legal name for a renter.
Mortgage
Interest Rate
Identity Theft
Tenant
22. The value of the second-best alternative that a person gives up when making one choice instead of another.
Fraud Risk
Opportunity Cost
Principal
Credit
23. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Progressive tax
Credit union
Reconcile
Opportunity Cost
24. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Fraud
Goal setting
Net income
Saving
25. Money earned from investments and employment.
Credit union
Variable expenses
Income
Mortgage company
26. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Deductions
Fraud
Fraud
Goal
27. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Benefits-received principle
Credit Report
Credit
Saving
28. A person or company to whom money is owed.
Creditor
Mortgage
Checking account
Fraud
29. The act of giving to charitable organizations or to those in need.
Rule of 72
Charitable Giving
Credit Card
401 k
30. A long-term loan to buy real estate including land and the structures on it.
Gross income
Mortgage
Coinsurance
Interest
31. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Credit union
Variable expenses
Goal
32. Taking risks with personal finances or personal assets
Gambling
401 k
Credit Card
Savings Accounts
33. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Consumer Credit Counseling
Ethics
Expenses
34. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Bankruptcy
Hacking
Variable expenses
Fraud Risk
35. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Credit Report
Deductible
Income
Variable expenses
36. A measure of the uncertainty of an investment's rate of return; possible losses.
Risk
Lease
Opportunity Cost
Charitable Giving
37. 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)
Progressive tax
401 k
Tenant
Checking account
38. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Budget
Dumpster Diving
Opportunity Cost
Risk
39. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Expenses
Credit Card
Ethics
Checking account
40. Payment for the use of someone else's money
Simple Interest
Fraud Risk
Interest
Copayment
41. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Risk
Lease
Consumer Credit Counseling
Morals
42. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Income
Fixed expenses
Interest
Budget
43. The value of the second-best alternative that a person gives up when making one choice instead of another.
Career
Mortgage company
Tenant
Opportunity Cost
44. A company that makes loans for the purchase of a house or other real estate.
Lease
Fraud
Mortgage
Mortgage company
45. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Premium
Reconcile
Morals
Individual Retirement Account (IRA)
46. A purposeful course of action or purpose in life that generally provides income
Opportunity Cost
Budget
Credit
Career
47. Costs paid when buying a house or real estate.
Premium
Fraud
Credit
Closing Costs
48. A company that makes loans for the purchase of a house or other real estate.
Career
Credit union
Mortgage company
Risk
49. A set of principles or beliefs that govern an individual's actions.
Copayment
Principal
Lease
Ethics
50. The chance or likelihood that something will happen.
Principal
Credit union
Probability
Risk