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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 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.
Rule of 72
Bankruptcy
401 k
Ethics
2. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Gross income
Identity Theft
Income
Individual Retirement Account (IRA)
3. 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.
401 k
Goal setting
Deductions
Annuity
4. An establishment that collects and distributes credit history info. of individuals & business.
Saving
Income
Credit Bureau
Closing Costs
5. 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.
Identity Theft
Social security
Checking account
Credit Card
6. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Budget
Mortgage
Hacking
Tax Deduction
7. How fast money in savings account or investment grows.
Rate of Return
Goal
Benefits-received principle
Opportunity Cost
8. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Check
Progressive tax
Interest Rate
Opportunity Cost
9. A non-cash contribution to a charitable organization which can be given a cash value.
Medicare
Consumer Credit Counseling
Gifts in-kind
Landlord
10. An establishment that collects and distributes credit history info. of individuals & business.
Credit Bureau
Savings Accounts
Net income
Mortgage company
11. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Identity Theft
Credit Report
Credit union
Variable expenses
12. The percentage of the costs of medical services paid by the patient.
Coinsurance
Career
Saving
Credit Score/Rating
13. A legal organization providing services or activities without commercial or monetary gain.
Checking account
Nonprofit organization
Career
Saving
14. 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.
Interest
Probability
Credit Report
Social security
15. The chance or likelihood that something will happen.
Fraud Risk
Income
Probability
Goal
16. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Rate of Return
Credit Card
Landlord
Opportunity Cost
17. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Identity Theft
Rate of Return
Coinsurance
18. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Budget
Net income
Expenses
Benefits-received principle
19. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Goal setting
Mortgage
Gambling
Dumpster Diving
20. 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.
Social security
Check
Rule of 72
Fraud Risk
21. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Medicare
Probability
Consumer Credit Counseling
Debit card
22. A plastic card used to deduct a purchase amount directly from your checking account.
Fixed expenses
Consumer Credit Counseling
Debit card
401 k
23. Someone who knowingly deceives you for their own personal gain.
Landlord
Career
Principal
Fraud
24. The chance that an investment has been misrepresented.
Income
Closing Costs
Fraud Risk
Identity Theft
25. The act of giving to charitable organizations or to those in need.
Identity Theft
Goal setting
Charitable Giving
Mortgage company
26. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Principal
Morals
Saving
Rule of 72
27. Wages or salary before deductions for taxes and other purposes.
Charitable Giving
Gross income
Simple Interest
Mortgage
28. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Savings Accounts
Tax Deduction
Progressive tax
Net income
29. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Saving
Deductions
Net income
Deductible
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.
Social security
Progressive tax
Hacking
Tax Deduction
31. The value of the second-best alternative that a person gives up when making one choice instead of another.
Mortgage
Opportunity Cost
Morals
Consumer Credit Counseling
32. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Tax Deduction
Medicare
Checking account
Goal
33. 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)
Gambling
Progressive tax
Ethics
Fraud
34. A person or company to whom money is owed.
Closing Costs
Creditor
Hacking
Lease
35. Costs paid when buying a house or real estate.
Consumer Credit Counseling
Closing Costs
Rate of Return
Progressive tax
36. Anything subtracted from your gross income.
Hacking
Creditor
Deductions
Rule of 72
37. A long-term loan to buy real estate including land and the structures on it.
Mortgage
Social security
Medicare
Morals
38. A person or company to whom money is owed.
Credit Score/Rating
Annuity
Lease
Creditor
39. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Coinsurance
Social security
Tax Deduction
Reconcile
40. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Variable expenses
Consumer Credit Counseling
401 k
Credit union
41. A company that makes loans for the purchase of a house or other real estate.
Deductions
Mortgage company
Interest
Simple Interest
42. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Goal setting
Interest Rate
Budget
Opportunity Cost
43. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Mortgage company
Social security
Landlord
Simple Interest
44. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Identity Theft
Expenses
Credit Card
Fraud
45. The fee paid for insurance protection.
Morals
Premium
Income
Checking account
46. The original amount of money deposited or invested.
Principal
Tenant
Mortgage company
Gross income
47. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Budget
Nonprofit organization
Consumer Credit Counseling
Savings Accounts
48. The percentage of the costs of medical services paid by the patient.
Coinsurance
Progressive tax
Premium
Tax Deduction
49. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Copayment
Principal
Income
Mortgage
50. A person who owns property and rents it to another.
Closing Costs
Rate of Return
Opportunity Cost
Landlord