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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.
Credit
Income
Checking account
Gifts in-kind
2. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Mortgage
Deductible
Social security
Nonprofit organization
3. A measure of the uncertainty of an investment's rate of return; possible losses.
Check
Coinsurance
Interest
Risk
4. A measure of the uncertainty of an investment's rate of return; possible losses.
Credit union
Net income
Risk
Credit union
5. Anything subtracted from your gross income.
Budget
Tax Deduction
Lease
Deductions
6. A legal organization providing services or activities without commercial or monetary gain.
Income
Progressive tax
Risk
Nonprofit organization
7. A state or federally chartered & not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements.
Interest Rate
Goal setting
Fixed expenses
Credit union
8. A person or company to whom money is owed.
Gambling
Creditor
Goal
Consumer Credit Counseling
9. Expenditures that change from week to week or month to month-- food & clothing & recreation & entertainment.
Income
Income
Landlord
Variable expenses
10. The costs of goods and services & including those that are FIXED (rent & car loans) and those that are VARIABLE (food & clothing & entertainment).
Probability
Expenses
Gambling
Nonprofit organization
11. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Net income
Fraud
Copayment
Goal setting
12. 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.
Variable expenses
401 k
Simple Interest
Gambling
13. Taking risks with personal finances or personal assets
Gambling
Mortgage
Mortgage company
Risk
14. A set of principles or beliefs that govern an individual's actions.
Medicare
Ethics
Nonprofit organization
Credit
15. Wages or salary before deductions for taxes and other purposes.
Coinsurance
Credit
Income
Gross income
16. Commonly called 'take home pay'; it is your income AFTER all deductions and exemptions.
Fixed expenses
Net income
Fraud Risk
Rate of Return
17. A bank or credit union account that allows withdrawals by writing a check.
Checking account
Landlord
Savings Accounts
Creditor
18. 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
Coinsurance
Annuity
Rule of 72
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.
Probability
Deductions
Reconcile
Credit Card
20. A system of values and principles of conduct that promotes good customs and virtues while condemning bad customs and vices.
Fixed expenses
Goal
Morals
Gambling
21. A written legal document directing a bank or credit union to pay a person or business a specific sum of money.
Coinsurance
Bankruptcy
Check
Creditor
22. 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.
Charitable Giving
Check
Principal
Social security
23. The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals & and funds for investing.
Deductions
Income
Interest Rate
Saving
24. A company that makes loans for the purchase of a house or other real estate.
Tax Deduction
Individual Retirement Account (IRA)
Mortgage company
Income
25. A plastic card used to deduct a purchase amount directly from your checking account.
Identity Theft
Simple Interest
Rate of Return
Debit card
26. 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.
Savings Accounts
Credit Report
Rule of 72
Budget
27. 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.
Career
Credit Card
Fixed expenses
Credit
28. The chance or likelihood that something will happen.
Probability
Morals
Copayment
Fraud Risk
29. Expenditures that are the same from week to week or month to month; such as mortgage or rent or car payments.
Credit Report
Fixed expenses
Net income
Mortgage
30. The fee paid for insurance protection.
Deductions
Premium
Check
Progressive tax
31. 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
Checking account
Principal
Income
32. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Identity Theft
Gross income
Mortgage
Charitable Giving
33. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Consumer Credit Counseling
Rate of Return
Goal setting
Deductible
34. A person who pays rent; the legal name for a renter.
Risk
Deductible
Tenant
Credit Report
35. The original amount of money deposited or invested.
Credit Score/Rating
Principal
Rate of Return
Mortgage
36. The percentage rate of interest charged to the borrower or paid to a lender & saver & or investor.
Interest Rate
Mortgage company
Goal
Lease
37. A non-cash contribution to a charitable organization which can be given a cash value.
401 k
Gifts in-kind
Identity Theft
401 k
38. An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement.
Tenant
Landlord
Individual Retirement Account (IRA)
Lease
39. 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.
Credit Score/Rating
Nonprofit organization
Rule of 72
Income
40. A person who owns property and rents it to another.
Income
Landlord
Deductible
Gifts in-kind
41. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
401 k
Saving
Mortgage
Goal
42. Payment for the use of someone else's money
Credit Bureau
Interest
Career
Identity Theft
43. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Morals
Savings Accounts
Reconcile
Copayment
44. 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.
Deductions
Credit Report
Mortgage company
Gambling
45. A person who owns property and rents it to another.
Coinsurance
Interest Rate
Landlord
Copayment
46. Payment for the use of someone else's money
Rate of Return
Gifts in-kind
Saving
Interest
47. The value of the second-best alternative that a person gives up when making one choice instead of another.
Opportunity Cost
Interest Rate
Income
Credit Card
48. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Bankruptcy
Hacking
Benefits-received principle
Budget
49. The act of giving to charitable organizations or to those in need.
Credit union
Deductions
Credit
Charitable Giving
50. Payments earned by households for selling or renting their productive resources. May include salaries & wages & interest and dividends
Debit card
Income
Bankruptcy
Goal setting