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Test your basic knowledge |
DSST Personal Finance 2
Start Test
Study First
Subjects
:
dsst
,
personal-finance
,
bvat
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. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
reasons not to invest in stocks
Federal Deposit Insurance Corporation (FDIC)
compound interest
Federal Open Market Committee (FOMC)
2. A log of the financial habits of a person who buys on credit.
factors that affect your income
liquidity
credit record
chapter 7
3. Oldest and largest by volume traded and market cap (2800 companies) - issued at least 1 million shares worth $100 million - earned more than $10 million in last 3 years
insurance
short term goals
New York Stock Exchange (NYSE)
Landlord
4. The total amount of an employee's earnings before deductions are taken out
Securities and Exchange Commission (SEC)
gross pay
Dow Jones
mutual funds (MF)
5. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
Annual percentage rate (APR)
factors that affect your income
supply
short term debt
6. Legal process in which some or all of the assets of a debtor are distributed among the creditors because the debtor is unable to pay his or her debts; the legal process of getting out of debt
inflation
chapter 7
bankruptcy
return
7. Be careful using credit cards - understand how much debt you have - pay off debt ASAP - pay off in full and on time - consolidate credit cards to low interest rate card
tips for using credit wisely
dividend
debit card
3 major credit bureaus
8. Expenses that change from month to month
interest
variable expenses
Rule of 72
needs
9. Items you need to survive ex: food - water
supply
needs
bankruptcy
Pay Yourself First (PYF)
10. Can be profitable - liquid
Federal Open Market Committee (FOMC)
reasons to invest in stocks
long term goals
inflation
11. The price of an item will go down if there is little demand or low supply. The price of an item will go up if there is a lot of demand or high amounts of supply.
simple interest
credit record
Law of Supply and Demand
long term goals
12. Items for enjoyment ex: eating out - entertainment - luxury items
Rule of 72
growth stocks
wants
Federal Deposit Insurance Corporation (FDIC)
13. To borrow money from a bank to purchase an item and pay for it over time
financing an item
time value of money
emergency fund
liquidity
14. Set costs that must be paid such as rent - insurance - and car payments
fixed expenses
disposable income
long term goals
reasons to invest in stocks
15. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
dividend
Federal Open Market Committee (FOMC)
collateral
factors that affect a mortgage
16. Goal in which you plan to prepare for and reach in the distant future - over 5 years
long term goals
mutual funds (MF)
bankruptcy
tips for a successful budget
17. The increase in price of goods and services
Securities and Exchange Commission (SEC)
long term goals
inflation
Annual percentage rate (APR)
18. Enforces securities laws and regulates the securities industry
Dow Jones
Securities and Exchange Commission (SEC)
net pay
diversification
19. Risky
reasons not to invest in stocks
Law of Supply and Demand
interest
inflation
20. You are being paid for it (ex: investment)
Kelley Blue Book
interest can benefit you when...
New York Stock Exchange (NYSE)
supply
21. The total earnings paid to an employee after payroll taxes and other deductions
debit card
net pay
Kelley Blue Book
long term goals
22. Account to help you save money and earn a small amount of interest at the same time
growth stocks
liquidity
compound interest
savings account
23. Regulates banks - makes short term loans to banks - conducts monetary policy
Federal Reserve System (FED)
mutual funds (MF)
New York Stock Exchange (NYSE)
gross pay
24. Protects depository institution accounts - incures commercial banks and savings and loan
Federal Deposit Insurance Corporation (FDIC)
needs
New York Stock Exchange (NYSE)
gross pay
25. Lenders must disclose all costs of credit
Truth in Lending Act
Federal Reserve System (FED)
how insurance is related to risk management
tips for a successful budget
26. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
CPI's relation to inflation
Federal Open Market Committee (FOMC)
discretionary income
certificate of deposit or CD
27. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
chapter 7
Federal Reserve System (FED)
return
blue chip stocks
28. Protects you from the probability that injury - damage or loss will occur
things that affect loans
how insurance is related to risk management
certificate of deposit or CD
mutual funds (MF)
29. The money an investor receives above and beyond the sum of money initially invested
debit card
Law of Supply and Demand
return
factors that affect your income
30. Equifax - Experian - TransUnion
financing an item
credit report
Kelley Blue Book
3 major credit bureaus
31. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
budget
return
Dow Jones
Federal Open Market Committee (FOMC)
32. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
Federal Reserve System (FED)
tax deferred
wants
electronic banking
33. High-priced common stocks that have been strong - profitable stocks for a long period of time.
wants
blue chip stocks
bankruptcy
Federal Deposit Insurance Corporation (FDIC)
34. The value of buying one item over another
opportunity cost
factors that affect a mortgage
Landlord
risk
35. Debts due within the next year (ex: loans - credit cards)
long term goals
collateral
tax deferred
short term debt
36. Allows pay back of debt with more time - court oversees repayment of plan
co-signing a loan
growth stocks
chapter 7
chapter 13
37. A card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank account
interest can be bad for you when....
Tenant
Truth in Lending Act
debit card
38. Carefully planned - practical - flexible - written and accessible
tips for a successful budget
mutual funds (MF)
needs
budget
39. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
co-signing a loan
demand
discretionary income
things that affect loans
40. The desire of a good or service
risk
Securities and Exchange Commission (SEC)
demand
financing an item
41. A plan for managing your money for a given period of time
CPI's relation to inflation
wants
risk
budget
42. Salary - wages - interest - campital gains - commission
Kelley Blue Book
factors that affect your income
gross pay
Federal Open Market Committee (FOMC)
43. Income risk - personal risk - liquidity risk - interest rate risk
factors that affect your income
types of risk
short term goals
collateral
44. A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.
disposable income
savings account
how insurance is related to risk management
credit report
45. Using computers to carry out transfers of money
budget
electronic banking
supply
chapter 7
46. You owe money (ex: credit card - loan)
Pay Yourself First (PYF)
interest can be bad for you when....
savings account
Dow Jones
47. Time - amount of money - rate of interest
interest can be bad for you when....
electronic banking
time value of money
collection agency or debt collector
48. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
Pay Yourself First (PYF)
reasons to invest in stocks
credit record
emergency fund
49. The money left to spend or save after taxes have been paid
Federal Reserve System (FED)
growth stocks
disposable income
factors that affect a mortgage
50. Consumer Price Index is the measure that examines the weighted average of prices of a basket of consumer goods and services - such as transporation - food and medical care.