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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. Money earned from investments and employment.
Income
Risk
Mortgage
Fraud
2. 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.
Credit Report
Identity Theft
Goal
Income
3. The chance that an investment has been misrepresented.
Individual Retirement Account (IRA)
Fraud Risk
Identity Theft
Credit Card
4. A non-cash contribution to a charitable organization which can be given a cash value.
Coinsurance
Gifts in-kind
Tenant
Copayment
5. A purposeful course of action or purpose in life that generally provides income
Mortgage
Tenant
Reconcile
Career
6. 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
Landlord
Check
7. 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
Creditor
Savings Accounts
Gross income
8. 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.
Medicare
Income
Annuity
Credit Bureau
9. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Budget
Credit union
Morals
Benefits-received principle
10. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Principal
Goal setting
Credit Report
Individual Retirement Account (IRA)
11. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Opportunity Cost
Simple Interest
Social security
Nonprofit organization
12. Payment for the use of someone else's money
Goal
Ethics
Copayment
Interest
13. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Net income
Landlord
Charitable Giving
Identity Theft
14. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Risk
Individual Retirement Account (IRA)
Deductible
Fraud Risk
15. Wages or salary before deductions for taxes and other purposes.
Social security
Gross income
Tax Deduction
Expenses
16. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Income
Interest Rate
Net income
Checking account
17. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Fixed expenses
Lease
Tax Deduction
Career
18. A long-term loan to buy real estate including land and the structures on it.
Mortgage
Goal
Credit union
Tax Deduction
19. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Saving
Fixed expenses
Expenses
Dumpster Diving
20. A long-term loan to buy real estate including land and the structures on it.
Credit Card
Mortgage
Copayment
Consumer Credit Counseling
21. The original amount of money deposited or invested.
Principal
Fixed expenses
Credit union
Social security
22. A plastic card used to deduct a purchase amount directly from your checking account.
Checking account
Principal
Debit card
Credit union
23. Someone who rummages through your trash looking for bills or other paper with your personal information on it.
Simple Interest
Gifts in-kind
Dumpster Diving
Lease
24. The original amount of money deposited or invested.
Principal
Risk
Income
Mortgage company
25. A legal organization providing services or activities without commercial or monetary gain.
Rule of 72
Fraud Risk
Nonprofit organization
Fraud
26. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Social security
Fraud
Check
Variable expenses
27. The value of the second-best alternative that a person gives up when making one choice instead of another.
Ethics
Deductible
Opportunity Cost
Rate of Return
28. The fee paid for insurance protection.
Credit Card
Premium
Nonprofit organization
Opportunity Cost
29. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Career
Credit Card
Rule of 72
401 k
30. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Career
Debit card
Annuity
31. The percentage of the costs of medical services paid by the patient.
Consumer Credit Counseling
Coinsurance
Annuity
Interest Rate
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.
Probability
Closing Costs
Bankruptcy
Lease
33. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Fixed expenses
Reconcile
Hacking
Fixed expenses
34. A set of principles or beliefs that govern an individual's actions.
Rate of Return
Ethics
Debit card
Premium
35. An establishment that collects and distributes credit history info. of individuals & business.
Gambling
Credit Card
Credit Bureau
Budget
36. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Principal
Opportunity Cost
Medicare
Probability
37. 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.
Expenses
Rule of 72
Charitable Giving
Income
38. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Individual Retirement Account (IRA)
Copayment
Bankruptcy
Mortgage
39. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Lease
Benefits-received principle
Interest Rate
Fixed expenses
40. A purposeful course of action or purpose in life that generally provides income
Gambling
Net income
Career
Closing Costs
41. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Risk
Copayment
Opportunity Cost
Savings Accounts
42. 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
Expenses
Budget
Creditor
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)
Progressive tax
Landlord
Medicare
Income
44. The act of giving to charitable organizations or to those in need.
Fraud Risk
Charitable Giving
Principal
Deductions
45. 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.
Lease
Credit
Savings Accounts
Mortgage
46. Money earned from investments and employment.
Income
Goal setting
Interest Rate
Mortgage company
47. The value of the second-best alternative that a person gives up when making one choice instead of another.
Mortgage
Mortgage
Variable expenses
Opportunity Cost
48. A person or company to whom money is owed.
Ethics
Creditor
Benefits-received principle
Closing Costs
49. How fast money in savings account or investment grows.
Individual Retirement Account (IRA)
401 k
Ethics
Rate of Return
50. 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.
Credit
Fixed expenses
Budget
Interest Rate