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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 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.
Principal
Credit Score/Rating
Closing Costs
Reconcile
2. How fast money in savings account or investment grows.
Individual Retirement Account (IRA)
Rate of Return
Net income
Credit
3. Wages or salary before deductions for taxes and other purposes.
Identity Theft
Gross income
Credit Report
Budget
4. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Rule of 72
Check
Interest
Individual Retirement Account (IRA)
5. A legal organization providing services or activities without commercial or monetary gain.
Expenses
Gifts in-kind
Hacking
Nonprofit organization
6. 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.
Lease
Annuity
Reconcile
Variable expenses
7. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Saving
Credit union
Individual Retirement Account (IRA)
Fraud
8. Wages or salary before deductions for taxes and other purposes.
Gross income
Tenant
Credit Bureau
Check
9. The act of giving to charitable organizations or to those in need.
Identity Theft
Landlord
Charitable Giving
Check
10. The chance or likelihood that something will happen.
Identity Theft
Credit union
Interest
Probability
11. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Coinsurance
Copayment
Identity Theft
Interest
12. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Ethics
Income
Career
Reconcile
13. A long-term loan to buy real estate including land and the structures on it.
Rate of Return
Individual Retirement Account (IRA)
Goal setting
Mortgage
14. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Saving
Interest
Credit
Tax Deduction
15. An establishment that collects and distributes credit history info. of individuals & business.
Credit Bureau
Annuity
Hacking
Net income
16. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Mortgage
Interest Rate
Saving
Check
17. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Lease
Budget
Rule of 72
Goal
18. Payment for the use of someone else's money
Annuity
Identity Theft
Income
Interest
19. A purposeful course of action or purpose in life that generally provides income
Mortgage
Interest Rate
Career
Credit Report
20. 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.
Debit card
Annuity
Goal
Goal setting
21. 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.
Goal setting
Principal
Budget
Tenant
22. The percentage of the costs of medical services paid by the patient.
Progressive tax
Coinsurance
Premium
Fraud
23. 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.
Opportunity Cost
Credit Report
Checking account
Mortgage company
24. A purposeful course of action or purpose in life that generally provides income
Rate of Return
Fixed expenses
Career
Morals
25. 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 union
Coinsurance
Lease
26. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Individual Retirement Account (IRA)
Variable expenses
Net income
Debit card
27. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Goal setting
Hacking
Check
28. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Interest Rate
Landlord
Expenses
Mortgage
29. The value of the second-best alternative that a person gives up when making one choice instead of another.
Nonprofit organization
Income
Opportunity Cost
Bankruptcy
30. 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.
401 k
Deductions
Checking account
Identity Theft
31. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Principal
Savings Accounts
Check
Fraud Risk
32. 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.
Opportunity Cost
Lease
Credit Score/Rating
Gifts in-kind
33. The original amount of money deposited or invested.
Creditor
Credit Card
Gifts in-kind
Principal
34. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Net income
Tenant
Individual Retirement Account (IRA)
Hacking
35. Payment for the use of someone else's money
Credit Report
Individual Retirement Account (IRA)
Interest
Ethics
36. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Goal
Deductible
Fraud Risk
Credit union
37. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Individual Retirement Account (IRA)
Fixed expenses
Mortgage
Goal
38. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Budget
Medicare
Variable expenses
Nonprofit organization
39. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Interest Rate
Probability
Check
Net income
40. The percentage of the costs of medical services paid by the patient.
Premium
Budget
Mortgage company
Coinsurance
41. 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.
Opportunity Cost
Risk
Variable expenses
Rule of 72
42. A long-term loan to buy real estate including land and the structures on it.
Mortgage
Budget
Saving
Creditor
43. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Mortgage
401 k
Credit Bureau
Fixed expenses
44. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Interest
Deductible
Gambling
Net income
45. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Reconcile
Premium
Dumpster Diving
Interest Rate
46. 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.
Rule of 72
Tax Deduction
Career
Annuity
47. A person or company to whom money is owed.
Identity Theft
Credit union
Creditor
Rate of Return
48. Money earned from investments and employment.
Landlord
Interest
Creditor
Income
49. Anything subtracted from your gross income.
Medicare
Copayment
Deductions
Premium
50. Costs paid when buying a house or real estate.
Gross income
Closing Costs
Credit Score/Rating
Social security