Test your basic knowledge |

DSST Personal Finance 2

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. 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.






2. Responsible for their own personal belongings in the case of an event like fire - water damage






3. Salary - wages - interest - campital gains - commission






4. Formula used to calculate how many years it would take to double an investment






5. 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






6. The value of buying one item over another






7. Set costs that must be paid such as rent - insurance - and car payments






8. The money an investor receives above and beyond the sum of money initially invested






9. Lenders must disclose all costs of credit






10. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange






11. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)






12. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses






13. You owe money (ex: credit card - loan)






14. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)






15. Stocks that pay low dividends - but are expected to grow






16. 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.






17. Investment that pools money from many investors to invest in stocks - bonds and other securities






18. The portion of corporate profits paid out to stockholders






19. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter






20. Account to help you save money and earn a small amount of interest at the same time






21. Agree to be responsible for loan payments if the other person can't make them






22. A fixed charge for borrowing money






23. Expenses that change from month to month






24. To borrow money from a bank to purchase an item and pay for it over time






25. The desire of a good or service






26. Source of information in determining a fair price for a vehicle - new or used






27. Allows pay back of debt with more time - court oversees repayment of plan






28. You are being paid for it (ex: investment)






29. The total earnings paid to an employee after payroll taxes and other deductions






30. Econoomy - interest rates - supply and demand of housing market - treasury bond rates






31. Time - amount of money - rate of interest






32. A plan for managing your money for a given period of time






33. Carefully planned - practical - flexible - written and accessible






34. Enforces securities laws and regulates the securities industry






35. 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.


36. Goal in which you plan to prepare for and reach in the distant future - over 5 years






37. Interest paid on the principal alone (I=p x r x t)






38. The money left to spend or save after taxes have been paid






39. Spreading out investments to reduce risk






40. A way to guarantee your financial protection against various risks






41. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage






42. Risky






43. Interest rates - length of time to borrow money






44. Protects depository institution accounts - incures commercial banks and savings and loan






45. Items for enjoyment ex: eating out - entertainment - luxury items






46. 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






47. Debts due within the next year (ex: loans - credit cards)






48. The total amount of an employee's earnings before deductions are taken out






49. High-priced common stocks that have been strong - profitable stocks for a long period of time.






50. Income risk - personal risk - liquidity risk - interest rate risk