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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. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Deductible
Probability
401 k
Variable expenses
2. A measure of the uncertainty of an investment's rate of return; possible losses.
Premium
Risk
401 k
Morals
3. A person who pays rent; the legal name for a renter.
Lease
Tenant
Interest
Goal setting
4. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Hacking
Mortgage
Credit Bureau
Benefits-received principle
5. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Individual Retirement Account (IRA)
Benefits-received principle
Debit card
6. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Rate of Return
Nonprofit organization
Rule of 72
7. A measure of the uncertainty of an investment's rate of return; possible losses.
Nonprofit organization
Risk
Checking account
Fraud Risk
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.
Reconcile
401 k
Deductible
Social security
9. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Income
Risk
Gambling
Ethics
10. How fast money in savings account or investment grows.
Fraud Risk
Savings Accounts
Rate of Return
Checking account
11. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Goal setting
Medicare
Saving
Reconcile
12. Money earned from investments and employment.
Income
Credit Card
Probability
Deductible
13. The value of the second-best alternative that a person gives up when making one choice instead of another.
Individual Retirement Account (IRA)
Interest
Opportunity Cost
Medicare
14. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Gifts in-kind
Expenses
Saving
Mortgage company
15. A long-term loan to buy real estate including land and the structures on it.
Identity Theft
Variable expenses
Mortgage
Checking account
16. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Goal
Income
Rule of 72
17. 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.
Charitable Giving
Credit Card
Opportunity Cost
401 k
18. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Social security
Individual Retirement Account (IRA)
Identity Theft
Fraud Risk
19. The chance or likelihood that something will happen.
Principal
Check
Ethics
Probability
20. A plastic card used to deduct a purchase amount directly from your checking account.
Career
Expenses
Debit card
Interest
21. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Mortgage company
Interest
Deductible
22. 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.
Mortgage
Income
Annuity
Gambling
23. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Credit union
Risk
Interest Rate
Fixed expenses
24. The original amount of money deposited or invested.
Mortgage
Gifts in-kind
Principal
Goal setting
25. Taking risks with personal finances or personal assets
Gambling
Goal
Progressive tax
Interest Rate
26. 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
Progressive tax
Annuity
Morals
27. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Rule of 72
Deductible
Deductible
28. The percentage of the costs of medical services paid by the patient.
Coinsurance
Variable expenses
Progressive tax
Check
29. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Net income
Risk
Individual Retirement Account (IRA)
Deductions
30. 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.
Mortgage
Budget
Progressive tax
Deductible
31. A person who pays rent; the legal name for a renter.
Morals
Tenant
Deductible
Rule of 72
32. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Income
Tax Deduction
Goal
Creditor
33. Money earned from investments and employment.
Rate of Return
Fixed expenses
Income
Consumer Credit Counseling
34. The act of giving to charitable organizations or to those in need.
Consumer Credit Counseling
Hacking
Charitable Giving
Nonprofit organization
35. The value of the second-best alternative that a person gives up when making one choice instead of another.
Opportunity Cost
Gifts in-kind
Consumer Credit Counseling
Mortgage
36. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Bankruptcy
Credit Score/Rating
Reconcile
Consumer Credit Counseling
37. A person who owns property and rents it to another.
Goal setting
Reconcile
Net income
Landlord
38. The act of giving to charitable organizations or to those in need.
Benefits-received principle
Charitable Giving
Progressive tax
Ethics
39. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Check
Deductible
Variable expenses
Closing Costs
40. Taking risks with personal finances or personal assets
Budget
Gambling
Gross income
Rate of Return
41. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Simple Interest
Career
Consumer Credit Counseling
Risk
42. A set of principles or beliefs that govern an individual's actions.
Ethics
Closing Costs
Annuity
Net income
43. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Hacking
Credit union
Progressive tax
Credit Card
44. 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.
Nonprofit organization
Rule of 72
Mortgage
Check
45. Someone who knowingly deceives you for their own personal gain.
Fraud
Career
Credit Card
Checking account
46. 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.
Medicare
Mortgage company
Career
Credit
47. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Dumpster Diving
Credit Score/Rating
Goal setting
Interest Rate
48. 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.
Lease
Deductions
401 k
Credit Report
49. Anything subtracted from your gross income.
Fixed expenses
Income
Deductions
Checking account
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
Risk
Income
Savings Accounts