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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. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Income
Identity Theft
Savings Accounts
Variable expenses
2. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Rule of 72
Check
Probability
Simple Interest
3. The fee paid for insurance protection.
Premium
Rate of Return
Gross income
Closing Costs
4. The chance that an investment has been misrepresented.
Mortgage company
Medicare
Fraud Risk
Lease
5. 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.
Credit Card
Lease
Interest
Rate of Return
6. A legal organization providing services or activities without commercial or monetary gain.
Nonprofit organization
Career
Mortgage
Social security
7. Payment for the use of someone else's money
Closing Costs
Checking account
Interest
Expenses
8. A company that makes loans for the purchase of a house or other real estate.
Interest Rate
Fixed expenses
Mortgage company
Bankruptcy
9. A person or company to whom money is owed.
Tenant
Charitable Giving
Creditor
Mortgage
10. 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
Interest
Credit Card
Charitable Giving
11. Costs paid when buying a house or real estate.
Consumer Credit Counseling
Closing Costs
Rate of Return
Coinsurance
12. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Fraud Risk
Tax Deduction
Expenses
Closing Costs
13. The process of comparing personal bank account records to the bank's records of that account balance in order to uncover any possible discrepancies.
Progressive tax
Reconcile
Tenant
Gross income
14. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Rate of Return
Tax Deduction
Saving
Social security
15. 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
Rule of 72
Debit card
401 k
16. The fee paid for insurance protection.
Morals
Mortgage
Premium
Lease
17. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Gifts in-kind
Tax Deduction
Goal setting
Premium
18. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Deductible
Bankruptcy
Saving
Gambling
19. How fast money in savings account or investment grows.
Annuity
Rate of Return
Variable expenses
Benefits-received principle
20. A long-term loan to buy real estate including land and the structures on it.
Benefits-received principle
Mortgage
Hacking
Risk
21. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Gambling
Check
Income
Debit card
22. 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.
Checking account
Bankruptcy
Principal
Credit
23. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Gambling
Individual Retirement Account (IRA)
Expenses
Gambling
24. A set of principles or beliefs that govern an individual's actions.
Charitable Giving
Bankruptcy
Mortgage company
Ethics
25. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Goal
Individual Retirement Account (IRA)
Interest
Goal setting
26. Taking risks with personal finances or personal assets
Gambling
Income
Credit Score/Rating
Fixed expenses
27. Taking risks with personal finances or personal assets
Gambling
401 k
Lease
Credit Score/Rating
28. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Credit union
Lease
Closing Costs
Variable expenses
29. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Goal setting
Check
Interest Rate
Fraud
30. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Copayment
Interest Rate
Debit card
Credit Report
31. The chance or likelihood that something will happen.
Gambling
Probability
Bankruptcy
Gross income
32. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Career
Credit union
Gambling
Progressive tax
33. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Checking account
Deductible
Nonprofit organization
Morals
34. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Savings Accounts
Check
Consumer Credit Counseling
Variable expenses
35. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets.
Opportunity Cost
Bankruptcy
Tax Deduction
Credit Bureau
36. A company that makes loans for the purchase of a house or other real estate.
Tax Deduction
Principal
Mortgage company
Variable expenses
37. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Tax Deduction
Simple Interest
Checking account
Landlord
38. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Checking account
Individual Retirement Account (IRA)
Tenant
Variable expenses
39. The value of the second-best alternative that a person gives up when making one choice instead of another.
Opportunity Cost
Budget
Bankruptcy
Consumer Credit Counseling
40. 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.
Checking account
Fraud Risk
Reconcile
Rule of 72
41. The original amount of money deposited or invested.
Credit
Premium
Net income
Principal
42. A plastic card used to deduct a purchase amount directly from your checking account.
Mortgage
Dumpster Diving
Progressive tax
Debit card
43. Costs paid when buying a house or real estate.
Interest
Closing Costs
Goal
Gambling
44. A person who pays rent; the legal name for a renter.
Tenant
Gross income
Income
Credit union
45. 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.
Gross income
Lease
Credit Card
Budget
46. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Rate of Return
Variable expenses
Net income
Charitable Giving
47. Payment for the use of someone else's money
Goal setting
Interest
Principal
Credit union
48. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Individual Retirement Account (IRA)
Goal
Premium
Fixed expenses
49. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Risk
Saving
401 k
Goal setting
50. Someone who knowingly deceives you for their own personal gain.
Mortgage
Saving
Lease
Fraud