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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. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Opportunity Cost
Benefits-received principle
Reconcile
Bankruptcy
2. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Savings Accounts
Reconcile
Gross income
Copayment
3. A legal organization providing services or activities without commercial or monetary gain.
Dumpster Diving
Credit Card
Credit union
Nonprofit organization
4. 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
Consumer Credit Counseling
Credit union
Dumpster Diving
5. A non-cash contribution to a charitable organization which can be given a cash value.
Gifts in-kind
Tax Deduction
Deductible
Interest Rate
6. Someone who knowingly deceives you for their own personal gain.
Fixed expenses
Credit Card
Premium
Fraud
7. A company that makes loans for the purchase of a house or other real estate.
Individual Retirement Account (IRA)
Mortgage company
Copayment
Saving
8. A measure of the uncertainty of an investment's rate of return; possible losses.
Risk
Tax Deduction
Simple Interest
Hacking
9. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Expenses
Variable expenses
Budget
Savings Accounts
10. 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
Opportunity Cost
401 k
Credit union
11. 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.
Annuity
Lease
Bankruptcy
Coinsurance
12. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Income
Mortgage company
Simple Interest
Social security
13. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Bankruptcy
Social security
Dumpster Diving
Morals
14. A plastic card used to deduct a purchase amount directly from your checking account.
Income
Lease
Risk
Debit card
15. A measure of the uncertainty of an investment's rate of return; possible losses.
Mortgage
Credit Report
Risk
Check
16. Federal government program & financed by deductions from wages that pays for certain health care expenses for older citizens.
Tax Deduction
Hacking
Medicare
Budget
17. 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.
Budget
Variable expenses
Bankruptcy
Nonprofit organization
18. 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.
Consumer Credit Counseling
Mortgage
Credit
Morals
19. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Closing Costs
Reconcile
Fraud Risk
Closing Costs
20. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Variable expenses
Credit Report
Benefits-received principle
Fixed expenses
21. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Rate of Return
Interest Rate
Variable expenses
Lease
22. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Income
401 k
Credit Card
Deductions
23. The value of the second-best alternative that a person gives up when making one choice instead of another.
401 k
Opportunity Cost
Reconcile
Credit Bureau
24. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Morals
Lease
Simple Interest
Saving
25. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Risk
Credit Card
Goal setting
Hacking
26. An establishment that collects and distributes credit history info. of individuals & business.
Coinsurance
Rate of Return
Probability
Credit Bureau
27. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Credit
Reconcile
Social security
Income
28. Money earned from investments and employment.
Budget
Consumer Credit Counseling
Career
Income
29. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Morals
Fraud
Bankruptcy
Deductions
30. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Benefits-received principle
Copayment
Credit Report
Individual Retirement Account (IRA)
31. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Deductible
Net income
Check
Checking account
32. 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.
Closing Costs
Rule of 72
Deductions
Dumpster Diving
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)
Interest Rate
Individual Retirement Account (IRA)
Progressive tax
Copayment
34. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Net income
Goal
Deductions
Gambling
35. A purposeful course of action or purpose in life that generally provides income
Deductible
Fraud Risk
Career
Goal setting
36. 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.
Goal setting
Landlord
Mortgage
Credit Report
37. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Copayment
Gambling
Credit Report
Income
38. 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.
Dumpster Diving
Credit
Career
Probability
39. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Annuity
Fixed expenses
Gross income
Income
40. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Credit
Tenant
Savings Accounts
Expenses
41. A person who owns property and rents it to another.
Identity Theft
Premium
Charitable Giving
Landlord
42. A long-term loan to buy real estate including land and the structures on it.
Mortgage
Credit Report
Interest Rate
Budget
43. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Goal
Morals
Savings Accounts
Closing Costs
44. 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.
Career
Social security
Budget
Variable expenses
45. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Mortgage company
Career
Fraud
Hacking
46. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Net income
Interest
Coinsurance
Reconcile
47. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Income
Annuity
Tax Deduction
Mortgage
48. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Benefits-received principle
Identity Theft
Mortgage company
Credit Score/Rating
49. 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.
Ethics
Landlord
Check
401 k
50. Taking risks with personal finances or personal assets
Gambling
Consumer Credit Counseling
Annuity
Expenses