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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. A bank or credit union account that allows withdrawals by writing a check.
Goal setting
Checking account
Goal setting
Rule of 72
2. How fast money in savings account or investment grows.
Dumpster Diving
Credit union
Credit union
Rate of Return
3. A company that makes loans for the purchase of a house or other real estate.
Reconcile
Mortgage company
Risk
Annuity
4. The original amount of money deposited or invested.
Credit Bureau
Principal
Benefits-received principle
Interest
5. The percentage of the costs of medical services paid by the patient.
Coinsurance
Variable expenses
Variable expenses
Creditor
6. Someone who knowingly deceives you for their own personal gain.
Debit card
Fraud Risk
Hacking
Fraud
7. Anything subtracted from your gross income.
Interest Rate
Nonprofit organization
Credit union
Deductions
8. 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
Variable expenses
Mortgage company
Hacking
9. 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
Goal setting
Net income
Gifts in-kind
10. 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
Principal
Mortgage
Budget
11. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Goal setting
Gross income
Rule of 72
Income
12. A person or company to whom money is owed.
Income
Career
Creditor
Goal setting
13. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. (Example- gas tax)
Gifts in-kind
Benefits-received principle
Social security
Deductible
14. An expense that a taxpayer can subtract from taxable income. ex: deductions for home mortgage interest & and charitable gifts.
Credit union
Interest
Goal setting
Tax Deduction
15. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Goal
Deductible
Net income
Benefits-received principle
16. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Identity Theft
Mortgage
Credit Bureau
Checking account
17. An amount of money that the member or insured pays directly to a provider at the time services are rendered.
Fraud Risk
Goal
Copayment
Closing Costs
18. 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 union
Goal setting
Rule of 72
Simple Interest
19. 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)
Landlord
Mortgage company
Progressive tax
401 k
20. A non-cash contribution to a charitable organization which can be given a cash value.
Gifts in-kind
Career
Credit union
Individual Retirement Account (IRA)
21. A plastic card used to deduct a purchase amount directly from your checking account.
Debit card
Charitable Giving
Premium
Reconcile
22. A statement about What a person wants to be & do & or have & accomplished by taking certain steps; provides direction to a plan of action.
Checking account
Progressive tax
Goal
Rule of 72
23. Wages or salary before deductions for taxes and other purposes.
Premium
Credit Bureau
Fraud
Gross income
24. 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
Gifts in-kind
Checking account
Budget
25. Dollar amount or percentage of a loss that is not insured & as specified in an insurance policy.
Checking account
Credit Card
Simple Interest
Deductible
26. A measure of the uncertainty of an investment's rate of return; possible losses.
Gross income
Tenant
Savings Accounts
Risk
27. A purposeful course of action or purpose in life that generally provides income
Consumer Credit Counseling
Income
Career
Landlord
28. 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.
Mortgage
Credit union
Annuity
Fraud Risk
29. The chance or likelihood that something will happen.
Nonprofit organization
Creditor
Probability
Mortgage company
30. Money earned from investments and employment.
Income
Consumer Credit Counseling
Mortgage company
Interest Rate
31. A loan to finance the purchase of real estate & usually with specified payment periods and interest rates.
Progressive tax
Mortgage
Expenses
Saving
32. A financial institution deposit account that pays interest and allows withdrawals. (SHORT term goals)
Copayment
Deductible
Closing Costs
Savings Accounts
33. A person who owns property and rents it to another.
Hacking
Copayment
Landlord
Annuity
34. The process used to determine What an individual wants to be & do or have (What a person wants to accomplish).
Nonprofit organization
Income
Credit Score/Rating
Goal setting
35. How fast money in savings account or investment grows.
Income
Credit Score/Rating
Rate of Return
Rule of 72
36. Interest calculated periodically on the loan principal or investment principal only & not on previously earned interest.
Simple Interest
Charitable Giving
Benefits-received principle
Premium
37. 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.
Credit Score/Rating
Interest
Risk
Social security
38. Someone who knowingly deceives you for their own personal gain.
Fraud Risk
Fraud
Check
Lease
39. A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest & according to a specific schedule.
Probability
401 k
Mortgage company
Credit Card
40. Taking risks with personal finances or personal assets
Rule of 72
Career
Mortgage
Gambling
41. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Consumer Credit Counseling
Credit Bureau
Rule of 72
Benefits-received principle
42. Using a person's name or personal information without the person's permission to steal money or get other benefit.
Expenses
Social security
Identity Theft
Reconcile
43. 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.
Annuity
401 k
Benefits-received principle
Gambling
44. An establishment that collects and distributes credit history info. of individuals & business.
Credit Bureau
Debit card
Mortgage company
Progressive tax
45. 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.
Net income
Credit Score/Rating
Risk
Rule of 72
46. Wages or salary before deductions for taxes and other purposes.
Savings Accounts
Gross income
Check
Goal
47. 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
Income
Nonprofit organization
Checking account
48. Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Checking account
Fraud Risk
Ethics
Consumer Credit Counseling
49. Costs paid when buying a house or real estate.
Closing Costs
Interest
Rate of Return
Credit Bureau
50. One may hack into your computer or another computer system & including schools & credit card companies & and other places maintaining personal info.
Hacking
Lease
Expenses
Identity Theft