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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. Equifax - Experian - TransUnion
Landlord
3 major credit bureaus
blue chip stocks
variable expenses
2. 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)
chapter 7
growth stocks
Pay Yourself First (PYF)
3. Items for enjoyment ex: eating out - entertainment - luxury items
co-signing a loan
Rule of 72
tax deferred
wants
4. The value of buying one item over another
reasons to invest in stocks
discretionary income
opportunity cost
blue chip stocks
5. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
credit report
discretionary income
risk
return
6. Investment that pools money from many investors to invest in stocks - bonds and other securities
budget
mutual funds (MF)
interest can be bad for you when....
risk
7. Risky
interest can be bad for you when....
reasons to invest in stocks
reasons not to invest in stocks
short term goals
8. 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
growth stocks
interest can benefit you when...
debit card
Annual percentage rate (APR)
9. High-priced common stocks that have been strong - profitable stocks for a long period of time.
blue chip stocks
credit report
wants
supply
10. 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.
11. Pursues payments on debts owed by individuals or businesses
debit card
interest can benefit you when...
collection agency or debt collector
return
12. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
liquidity
reasons to invest in stocks
Rule of 72
chapter 7
13. The money left to spend or save after taxes have been paid
Federal Open Market Committee (FOMC)
opportunity cost
diversification
disposable income
14. 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
Dow Jones
New York Stock Exchange (NYSE)
tips for a successful budget
credit report
15. A way to guarantee your financial protection against various risks
growth stocks
insurance
collateral
return
16. Account to help you save money and earn a small amount of interest at the same time
interest can be bad for you when....
things that affect loans
diversification
savings account
17. A log of the financial habits of a person who buys on credit.
variable expenses
Truth in Lending Act
credit record
debit card
18. Using computers to carry out transfers of money
tips for a successful budget
Federal Open Market Committee (FOMC)
electronic banking
Landlord
19. Set costs that must be paid such as rent - insurance - and car payments
mutual funds (MF)
fixed expenses
interest
emergency fund
20. Carefully planned - practical - flexible - written and accessible
3 major credit bureaus
short term debt
demand
tips for a successful budget
21. Time - amount of money - rate of interest
long term goals
wants
time value of money
diversification
22. Source of information in determining a fair price for a vehicle - new or used
short term goals
Kelley Blue Book
factors that affect a mortgage
collateral
23. Expenses that change from month to month
reasons to invest in stocks
variable expenses
discretionary income
Kelley Blue Book
24. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
Landlord
tax deferred
emergency fund
debit card
25. Goal in which you plan to reach in the near future - one year or less
opportunity cost
short term goals
bankruptcy
inflation
26. Ability to convert to cash and maintain value
debit card
diversification
liquidity
Federal Open Market Committee (FOMC)
27. The total earnings paid to an employee after payroll taxes and other deductions
credit report
net pay
types of risk
long term goals
28. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
tips for using credit wisely
Annual percentage rate (APR)
New York Stock Exchange (NYSE)
collateral
29. The money an investor receives above and beyond the sum of money initially invested
return
opportunity cost
bankruptcy
compound interest
30. 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.
Law of Supply and Demand
Federal Reserve System (FED)
Dow Jones
risk
31. Only responsible for the building and the property in the case of an event like fire - water damage
Landlord
debit card
Annual percentage rate (APR)
demand
32. 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.
short term goals
credit record
credit report
budget
33. Regulates banks - makes short term loans to banks - conducts monetary policy
needs
Federal Reserve System (FED)
chapter 13
diversification
34. Interest rates - length of time to borrow money
tax deferred
reasons to invest in stocks
liquidity
things that affect loans
35. Items you need to survive ex: food - water
liquidity
debit card
electronic banking
needs
36. Can be profitable - liquid
interest can benefit you when...
reasons to invest in stocks
Truth in Lending Act
how insurance is related to risk management
37. 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
opportunity cost
bankruptcy
risk
Federal Open Market Committee (FOMC)
38. The possibility for loss on an investment
interest can be bad for you when....
chapter 7
Kelley Blue Book
risk
39. Salary - wages - interest - campital gains - commission
disposable income
long term goals
Federal Deposit Insurance Corporation (FDIC)
factors that affect your income
40. The desire of a good or service
demand
tax deferred
credit record
New York Stock Exchange (NYSE)
41. Allows pay back of debt with more time - court oversees repayment of plan
Rule of 72
reasons to invest in stocks
chapter 13
Federal Open Market Committee (FOMC)
42. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
disposable income
needs
risk
compound interest
43. The increase in price of goods and services
dividend
inflation
short term goals
needs
44. To borrow money from a bank to purchase an item and pay for it over time
emergency fund
things that affect loans
electronic banking
financing an item
45. A plan for managing your money for a given period of time
credit record
chapter 13
budget
risk
46. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
types of risk
factors that affect a mortgage
growth stocks
insurance
47. You are being paid for it (ex: investment)
tips for using credit wisely
liquidity
collateral
interest can benefit you when...
48. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
supply
fixed expenses
bankruptcy
49. Agree to be responsible for loan payments if the other person can't make them
interest can benefit you when...
net pay
co-signing a loan
dividend
50. Enforces securities laws and regulates the securities industry
Securities and Exchange Commission (SEC)
variable expenses
tips for using credit wisely
growth stocks