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. Protects you from the probability that injury - damage or loss will occur






2. Enforces securities laws and regulates the securities industry






3. Insured interest earning savings account with restricted access to the fund; not as easy to get liquid as a savings account






4. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.






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






6. Items you need to survive ex: food - water






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






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






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






10. 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.






11. Lenders must disclose all costs of credit






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






13. Can be profitable - liquid






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






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






16. 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.


17. 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






18. Ability to convert to cash and maintain value






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






20. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property






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






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






23. The increase in price of goods and services






24. The possibility for loss on an investment






25. Pursues payments on debts owed by individuals or businesses






26. Using computers to carry out transfers of money






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






28. Time - amount of money - rate of interest






29. Properties or assets that are offered to secure a loan or other credit; subject to seizure upon default






30. Regulates banks - makes short term loans to banks - conducts monetary policy






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






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






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






34. The portion of corporate profits paid out to stockholders






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






36. Spreading out investments to reduce risk






37. 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






38. Expenses that change from month to month






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






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






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






42. Goal in which you plan to reach in the near future - one year or less






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






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






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






46. Interest rates - length of time to borrow money






47. 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






48. Only responsible for the building and the property in the case of an event like fire - water damage






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






50. A log of the financial habits of a person who buys on credit.