Permanent Resident
Definition
A person who has been granted authorisation to live and work in a country indefinitely but has not yet become a citizen.
Explanation
Permanent residents enjoy many of the same rights as citizens, including the right to live and work in the country without a visa. However, they typically cannot vote in national elections or hold certain government positions. In the US, permanent residents hold a Green Card. In the UK, the equivalent is Indefinite Leave to Remain (ILR). In Canada, permanent resident status is confirmed with a PR Card. In Australia, permanent residents hold a permanent visa. Permanent residency is usually a prerequisite for applying for citizenship through naturalization.
Why this matters for your test
You should understand the difference between permanent residency and citizenship, as this is the step most test takers are completing.
Source: General immigration terminology