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 depository institution accounts - incures commercial banks and savings and loan






2. 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






3. The value of buying one item over another






4. Ability to convert to cash and maintain value






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






6. The portion of corporate profits paid out to stockholders






7. 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






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






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






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






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






12. Lenders must disclose all costs of credit






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






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






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






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






17. Pursues payments on debts owed by individuals or businesses






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






19. Enforces securities laws and regulates the securities industry






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






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






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






23. The increase in price of goods and services






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






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






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






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






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






29. Spreading out investments to reduce risk






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






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






32. A fixed charge for borrowing money






33. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States






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






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






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






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






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






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






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






41. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange






42. Expenses that change from month to month






43. The possibility for loss on an investment






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






45. The availability of a good or service






46. Time - amount of money - rate of interest






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






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






49. 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.


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