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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. Regulates banks - makes short term loans to banks - conducts monetary policy
insurance
interest
Federal Reserve System (FED)
inflation
2. The total earnings paid to an employee after payroll taxes and other deductions
electronic banking
mutual funds (MF)
net pay
certificate of deposit or CD
3. The portion of corporate profits paid out to stockholders
liquidity
dividend
Kelley Blue Book
Dow Jones
4. A way to guarantee your financial protection against various risks
insurance
Securities and Exchange Commission (SEC)
types of risk
needs
5. 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.
compound interest
risk
Law of Supply and Demand
Landlord
6. Goal in which you plan to prepare for and reach in the distant future - over 5 years
reasons to invest in stocks
chapter 7
long term goals
collection agency or debt collector
7. Ability to convert to cash and maintain value
Truth in Lending Act
fixed expenses
liquidity
growth stocks
8. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
compound interest
interest can be bad for you when....
growth stocks
electronic banking
9. Money set aside for unforseen expenses in case of injury - loss of job or extra expenses
emergency fund
budget
discretionary income
opportunity cost
10. Can be profitable - liquid
chapter 13
long term goals
CPI's relation to inflation
reasons to invest in stocks
11. To borrow money from a bank to purchase an item and pay for it over time
credit report
compound interest
Law of Supply and Demand
financing an item
12. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
chapter 7
growth stocks
factors that affect a mortgage
credit report
13. The total amount of an employee's earnings before deductions are taken out
tips for a successful budget
return
collateral
gross pay
14. 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
gross pay
tips for using credit wisely
Federal Reserve System (FED)
3 major credit bureaus
15. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
interest
types of risk
discretionary income
gross pay
16. Stocks that pay low dividends - but are expected to grow
disposable income
growth stocks
financing an item
Federal Reserve System (FED)
17. Formula used to calculate how many years it would take to double an investment
Rule of 72
Kelley Blue Book
Truth in Lending Act
simple interest
18. Items for enjoyment ex: eating out - entertainment - luxury items
return
chapter 13
wants
dividend
19. Interest rates - length of time to borrow money
things that affect loans
National Association of Securities Dealers Automated Quotations (NASDAQ)
net pay
wants
20. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
tax deferred
debit card
financing an item
budget
21. Enforces securities laws and regulates the securities industry
Securities and Exchange Commission (SEC)
credit report
interest can be bad for you when....
tips for using credit wisely
22. The value of buying one item over another
opportunity cost
reasons to invest in stocks
blue chip stocks
net pay
23. 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.
interest can be bad for you when....
liquidity
compound interest
credit report
24. Salary - wages - interest - campital gains - commission
reasons to invest in stocks
collateral
factors that affect your income
liquidity
25. Using computers to carry out transfers of money
emergency fund
simple interest
Dow Jones
electronic banking
26. Goal in which you plan to reach in the near future - one year or less
Truth in Lending Act
long term goals
short term goals
how insurance is related to risk management
27. Responsible for their own personal belongings in the case of an event like fire - water damage
budget
Tenant
simple interest
reasons not to invest in stocks
28. Expenses that change from month to month
Dow Jones
variable expenses
supply
how insurance is related to risk management
29. 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.
30. A log of the financial habits of a person who buys on credit.
opportunity cost
Federal Deposit Insurance Corporation (FDIC)
simple interest
credit record
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
needs
New York Stock Exchange (NYSE)
CPI's relation to inflation
disposable income
32. The availability of a good or service
long term goals
return
supply
3 major credit bureaus
33. Carefully planned - practical - flexible - written and accessible
things that affect loans
credit report
risk
tips for a successful budget
34. The increase in price of goods and services
Federal Reserve System (FED)
inflation
Rule of 72
supply
35. Set costs that must be paid such as rent - insurance - and car payments
CPI's relation to inflation
fixed expenses
tips for using credit wisely
credit record
36. You are being paid for it (ex: investment)
compound interest
blue chip stocks
interest can benefit you when...
chapter 7
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
Federal Open Market Committee (FOMC)
needs
co-signing a loan
debit card
38. The possibility for loss on an investment
risk
credit report
tax deferred
co-signing a loan
39. Investment that pools money from many investors to invest in stocks - bonds and other securities
3 major credit bureaus
mutual funds (MF)
emergency fund
simple interest
40. A fixed charge for borrowing money
tax deferred
Kelley Blue Book
risk
interest
41. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
simple interest
Pay Yourself First (PYF)
fixed expenses
time value of money
42. Protects depository institution accounts - incures commercial banks and savings and loan
co-signing a loan
interest
CPI's relation to inflation
Federal Deposit Insurance Corporation (FDIC)
43. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default
Rule of 72
Tenant
co-signing a loan
collateral
44. Account to help you save money and earn a small amount of interest at the same time
factors that affect a mortgage
types of risk
savings account
chapter 7
45. Only responsible for the building and the property in the case of an event like fire - water damage
emergency fund
Landlord
debit card
bankruptcy
46. Equifax - Experian - TransUnion
fixed expenses
3 major credit bureaus
growth stocks
insurance
47. Agree to be responsible for loan payments if the other person can't make them
credit report
collateral
co-signing a loan
how insurance is related to risk management
48. Items you need to survive ex: food - water
needs
budget
Federal Deposit Insurance Corporation (FDIC)
compound interest
49. 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
tax deferred
return
demand
50. Lenders must disclose all costs of credit
Truth in Lending Act
collection agency or debt collector
blue chip stocks
tips for using credit wisely