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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 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
Check
Variable expenses
Lease
2. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Copayment
Credit Score/Rating
Consumer Credit Counseling
Goal setting
3. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Check
Progressive tax
Mortgage
Credit
4. A measure of the uncertainty of an investment's rate of return; possible losses.
Closing Costs
Career
Risk
Creditor
5. Taking risks with personal finances or personal assets
Budget
Gambling
Goal setting
Rate of Return
6. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Copayment
Savings Accounts
Credit Score/Rating
Deductible
7. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Income
Progressive tax
Creditor
Morals
8. 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
Reconcile
Goal setting
Interest Rate
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.
Tax Deduction
Deductible
Fixed expenses
Credit Score/Rating
10. The value of the second-best alternative that a person gives up when making one choice instead of another.
Mortgage company
Opportunity Cost
Credit Report
Annuity
11. The fee paid for insurance protection.
Credit Card
Dumpster Diving
Premium
Credit Score/Rating
12. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Risk
Copayment
Net income
Savings Accounts
13. 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.
Simple Interest
Gifts in-kind
Credit Report
Annuity
14. 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.
Coinsurance
Net income
401 k
Deductible
15. A person who owns property and rents it to another.
Landlord
Credit Report
Ethics
Goal
16. 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.
Budget
Credit Score/Rating
Nonprofit organization
Credit Report
17. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Medicare
Consumer Credit Counseling
Probability
Savings Accounts
18. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
401 k
Expenses
Deductible
Income
19. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Bankruptcy
Mortgage company
Debit card
20. 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)
Premium
401 k
Progressive tax
Bankruptcy
21. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Social security
Goal
Medicare
Identity Theft
22. 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.
Career
Copayment
Saving
Credit Report
23. How fast money in savings account or investment grows.
Annuity
Rate of Return
Credit Report
Interest
24. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Career
Hacking
Income
Closing Costs
25. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Simple Interest
Credit Card
Saving
Interest Rate
26. A long-term loan to buy real estate including land and the structures on it.
Net income
Opportunity Cost
Mortgage
Reconcile
27. 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.
Income
Risk
Lease
Dumpster Diving
28. The chance that an investment has been misrepresented.
Rate of Return
Hacking
Saving
Fraud Risk
29. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Fraud
Credit
Closing Costs
30. 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.
Rule of 72
401 k
Social security
Hacking
31. A non-cash contribution to a charitable organization which can be given a cash value.
Gifts in-kind
Income
Credit union
Individual Retirement Account (IRA)
32. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Individual Retirement Account (IRA)
Goal setting
Dumpster Diving
Checking account
33. 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
Fraud Risk
Income
Bankruptcy
34. The percentage of the costs of medical services paid by the patient.
Coinsurance
Mortgage
401 k
Copayment
35. The percentage of the costs of medical services paid by the patient.
Tenant
Credit union
Coinsurance
Annuity
36. Anything subtracted from your gross income.
Budget
Deductions
Morals
Simple Interest
37. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Credit union
Tax Deduction
Morals
Budget
38. An establishment that collects and distributes credit history info. of individuals & business.
Income
Mortgage
Credit Bureau
Identity Theft
39. A measure of the uncertainty of an investment's rate of return; possible losses.
Benefits-received principle
Variable expenses
Risk
Coinsurance
40. The chance or likelihood that something will happen.
Goal setting
Mortgage
Tax Deduction
Probability
41. Wages or salary before deductions for taxes and other purposes.
Ethics
Expenses
Credit Bureau
Gross income
42. Someone who knowingly deceives you for their own personal gain.
Simple Interest
Premium
Income
Fraud
43. 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)
Credit union
Progressive tax
Career
Risk
44. Payment for the use of someone else's money
Principal
Credit union
Interest
Credit Report
45. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Consumer Credit Counseling
Variable expenses
Net income
Fraud
46. A company that makes loans for the purchase of a house or other real estate.
Mortgage company
Net income
Fraud
Benefits-received principle
47. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Opportunity Cost
Goal
Debit card
Mortgage
48. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Lease
Check
Fraud
Nonprofit organization
49. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Dumpster Diving
Premium
Probability
Fixed expenses
50. Costs paid when buying a house or real estate.
Debit card
Creditor
Budget
Closing Costs