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






2. 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.






3. 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.






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






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






6. Risky






7. 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






8. Using computers to carry out transfers of money






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






10. Pursues payments on debts owed by individuals or businesses






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






12. 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






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






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






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






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






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






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






19. The possibility for loss on an investment






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






21. Spreading out investments to reduce risk






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






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






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






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






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






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






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






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






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






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






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






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






34. A fixed charge for borrowing money






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






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






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






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






39. Ability to convert to cash and maintain value






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






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






42. The availability of a good or service






43. Can be profitable - liquid






44. The increase in price of goods and services






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






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






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






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






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






50. Time - amount of money - rate of interest