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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. Allows pay back of debt with more time - court oversees repayment of plan
short term goals
chapter 13
New York Stock Exchange (NYSE)
how insurance is related to risk management
2. Risky
variable expenses
Federal Reserve System (FED)
reasons not to invest in stocks
how insurance is related to risk management
3. A fixed charge for borrowing money
time value of money
liquidity
financing an item
interest
4. 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
debit card
interest
Dow Jones
growth stocks
5. Equifax - Experian - TransUnion
growth stocks
3 major credit bureaus
chapter 7
tips for a successful budget
6. 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.
blue chip stocks
demand
credit report
interest
7. Lenders must disclose all costs of credit
electronic banking
fixed expenses
Truth in Lending Act
debit card
8. Protects you from the probability that injury - damage or loss will occur
how insurance is related to risk management
reasons to invest in stocks
Truth in Lending Act
emergency fund
9. The money left to spend or save after taxes have been paid
disposable income
certificate of deposit or CD
financing an item
Truth in Lending Act
10. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
3 major credit bureaus
compound interest
Federal Deposit Insurance Corporation (FDIC)
credit report
11. Investment that pools money from many investors to invest in stocks - bonds and other securities
chapter 7
long term goals
mutual funds (MF)
demand
12. A log of the financial habits of a person who buys on credit.
credit record
Truth in Lending Act
Kelley Blue Book
net pay
13. The possibility for loss on an investment
risk
supply
long term goals
Federal Reserve System (FED)
14. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
interest
financing an item
emergency fund
Law of Supply and Demand
15. Salary - wages - interest - campital gains - commission
disposable income
factors that affect your income
financing an item
Dow Jones
16. The increase in price of goods and services
growth stocks
gross pay
time value of money
inflation
17. Stocks that pay low dividends - but are expected to grow
emergency fund
needs
growth stocks
tips for using credit wisely
18. A plan for managing your money for a given period of time
budget
certificate of deposit or CD
Landlord
short term goals
19. The money an investor receives above and beyond the sum of money initially invested
Federal Open Market Committee (FOMC)
Federal Reserve System (FED)
fixed expenses
return
20. The availability of a good or service
chapter 7
factors that affect a mortgage
supply
needs
21. Enforces securities laws and regulates the securities industry
Securities and Exchange Commission (SEC)
variable expenses
insurance
short term goals
22. The portion of corporate profits paid out to stockholders
dividend
short term goals
gross pay
blue chip stocks
23. You are being paid for it (ex: investment)
interest can benefit you when...
3 major credit bureaus
gross pay
discretionary income
24. Goal in which you plan to prepare for and reach in the distant future - over 5 years
Landlord
long term goals
interest can be bad for you when....
electronic banking
25. 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.
26. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
mutual funds (MF)
chapter 7
discretionary income
needs
27. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account
certificate of deposit or CD
net pay
diversification
Annual percentage rate (APR)
28. Account to help you save money and earn a small amount of interest at the same time
savings account
electronic banking
simple interest
things that affect loans
29. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
net pay
insurance
chapter 7
factors that affect your income
30. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
needs
chapter 13
certificate of deposit or CD
Pay Yourself First (PYF)
31. 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
electronic banking
New York Stock Exchange (NYSE)
risk
discretionary income
32. Responsible for their own personal belongings in the case of an event like fire - water damage
inflation
demand
Federal Reserve System (FED)
Tenant
33. Goal in which you plan to reach in the near future - one year or less
electronic banking
short term goals
return
wants
34. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
wants
factors that affect a mortgage
gross pay
opportunity cost
35. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
how insurance is related to risk management
3 major credit bureaus
Dow Jones
inflation
36. Spreading out investments to reduce risk
diversification
Securities and Exchange Commission (SEC)
time value of money
chapter 13
37. Items for enjoyment ex: eating out - entertainment - luxury items
types of risk
wants
Truth in Lending Act
compound interest
38. Regulates banks - makes short term loans to banks - conducts monetary policy
opportunity cost
variable expenses
Federal Reserve System (FED)
interest can benefit you when...
39. Expenses that change from month to month
variable expenses
certificate of deposit or CD
interest
reasons not to invest in stocks
40. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Federal Open Market Committee (FOMC)
time value of money
fixed expenses
reasons not to invest in stocks
41. A way to guarantee your financial protection against various risks
3 major credit bureaus
disposable income
credit report
insurance
42. Set costs that must be paid such as rent - insurance - and car payments
Truth in Lending Act
things that affect loans
fixed expenses
Law of Supply and Demand
43. Items you need to survive ex: food - water
compound interest
long term goals
wants
needs
44. Interest rates - length of time to borrow money
things that affect loans
needs
long term goals
types of risk
45. Debts due within the next year (ex: loans - credit cards)
tips for a successful budget
time value of money
gross pay
short term debt
46. Only responsible for the building and the property in the case of an event like fire - water damage
Truth in Lending Act
types of risk
demand
Landlord
47. Protects depository institution accounts - incures commercial banks and savings and loan
interest can benefit you when...
Federal Deposit Insurance Corporation (FDIC)
tips for using credit wisely
simple interest
48. 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
bankruptcy
Federal Open Market Committee (FOMC)
demand
credit record
49. Can be profitable - liquid
return
factors that affect a mortgage
Federal Open Market Committee (FOMC)
reasons to invest in stocks
50. Ability to convert to cash and maintain value
time value of money
interest can benefit you when...
Tenant
liquidity