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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. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Career
Deductions
Tax Deduction
Landlord
2. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Benefits-received principle
Progressive tax
Income
Individual Retirement Account (IRA)
3. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Credit union
Copayment
Deductions
Copayment
4. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Tenant
Goal setting
Medicare
Gambling
5. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Goal setting
Lease
Medicare
Simple Interest
6. A non-cash contribution to a charitable organization which can be given a cash value.
Individual Retirement Account (IRA)
Ethics
Gifts in-kind
Simple Interest
7. The act of giving to charitable organizations or to those in need.
Career
Dumpster Diving
Tax Deduction
Charitable Giving
8. 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.
Bankruptcy
Credit
Dumpster Diving
Benefits-received principle
9. 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)
Savings Accounts
Progressive tax
Tenant
Bankruptcy
10. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Gambling
Individual Retirement Account (IRA)
Credit Card
Premium
11. Payment for the use of someone else's money
Interest
Credit Score/Rating
Credit Report
Gross income
12. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Benefits-received principle
Closing Costs
Mortgage company
Credit union
13. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Fixed expenses
Goal setting
Consumer Credit Counseling
Ethics
14. How fast money in savings account or investment grows.
Progressive tax
Rate of Return
Check
Tax Deduction
15. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Simple Interest
Nonprofit organization
Benefits-received principle
Hacking
16. 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
Variable expenses
Benefits-received principle
17. A person or company to whom money is owed.
Goal
Creditor
Risk
Hacking
18. The chance that an investment has been misrepresented.
Principal
Copayment
Fraud
Fraud Risk
19. A person who pays rent; the legal name for a renter.
Tenant
Fraud Risk
Progressive tax
Gross income
20. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Social security
Lease
Lease
21. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Probability
Goal setting
Morals
Deductions
22. 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
Credit Report
Rule of 72
Expenses
23. A non-cash contribution to a charitable organization which can be given a cash value.
Check
Coinsurance
Credit Report
Gifts in-kind
24. Taking risks with personal finances or personal assets
Consumer Credit Counseling
Tax Deduction
Bankruptcy
Gambling
25. Payment for the use of someone else's money
Hacking
Interest
Saving
Deductions
26. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Benefits-received principle
Reconcile
Goal setting
27. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Tenant
Dumpster Diving
Morals
Variable expenses
28. Anything subtracted from your gross income.
Consumer Credit Counseling
Creditor
Checking account
Deductions
29. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Tax Deduction
Interest Rate
Check
Income
30. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Identity Theft
Gross income
Career
Charitable Giving
31. Taking risks with personal finances or personal assets
Gambling
Risk
Rate of Return
Credit Bureau
32. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Net income
Annuity
Opportunity Cost
Career
33. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Career
Credit Report
Dumpster Diving
Goal
34. 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.
Principal
Mortgage
Checking account
Social security
35. A measure of the uncertainty of an investment's rate of return; possible losses.
Fixed expenses
Risk
Benefits-received principle
401 k
36. The value of the second-best alternative that a person gives up when making one choice instead of another.
Lease
Opportunity Cost
Expenses
Principal
37. 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.
Reconcile
Credit Report
Benefits-received principle
Morals
38. A person who owns property and rents it to another.
Interest Rate
Landlord
Net income
Credit union
39. A legal organization providing services or activities without commercial or monetary gain.
Saving
Deductions
Nonprofit organization
Copayment
40. A legal organization providing services or activities without commercial or monetary gain.
Rule of 72
Nonprofit organization
Annuity
Risk
41. A person or company to whom money is owed.
Creditor
Savings Accounts
Dumpster Diving
Net income
42. Money earned from investments and employment.
Income
Probability
Goal setting
Lease
43. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Gross income
Fixed expenses
Fraud Risk
Morals
44. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Landlord
Mortgage
Premium
Savings Accounts
45. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Mortgage company
Individual Retirement Account (IRA)
Career
Interest Rate
46. A company that makes loans for the purchase of a house or other real estate.
Coinsurance
Rule of 72
Mortgage company
Deductions
47. Anything subtracted from your gross income.
Nonprofit organization
Nonprofit organization
Deductions
Morals
48. 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.
Expenses
Premium
Credit Card
Annuity
49. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Fraud Risk
Dumpster Diving
Hacking
Saving
50. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Interest Rate
Checking account
Deductions
Tax Deduction