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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. Disposable income available for spending and saving after an individual has purchased the basic necessities of food - clothing - and shelter
emergency fund
interest can benefit you when...
discretionary income
certificate of deposit or CD
2. Interest paid on the principal alone (I=p x r x t)
short term goals
short term debt
gross pay
simple interest
3. Formula used to calculate how many years it would take to double an investment
Rule of 72
fixed expenses
emergency fund
time value of money
4. The possibility for loss on an investment
Securities and Exchange Commission (SEC)
Tenant
debit card
risk
5. Interest calculated on both the principal and the accrued interest (daily - monthly - quarterly - semi-annually - annually)
Truth in Lending Act
tips for a successful budget
interest can benefit you when...
compound interest
6. You are being paid for it (ex: investment)
interest can benefit you when...
savings account
chapter 13
Annual percentage rate (APR)
7. Interest rates - length of time to borrow money
things that affect loans
interest can benefit you when...
Federal Reserve System (FED)
collateral
8. Responsible for their own personal belongings in the case of an event like fire - water damage
inflation
savings account
factors that affect a mortgage
Tenant
9. The desire of a good or service
Federal Deposit Insurance Corporation (FDIC)
demand
return
disposable income
10. The portion of corporate profits paid out to stockholders
disposable income
credit report
reasons to invest in stocks
dividend
11. The total earnings paid to an employee after payroll taxes and other deductions
net pay
needs
compound interest
budget
12. 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.
credit report
financing an item
wants
Annual percentage rate (APR)
13. The Federal Reserve committee responsible for open market operations and managing the money supply in the United States
Rule of 72
insurance
inflation
Federal Open Market Committee (FOMC)
14. A major stock exchange that handles trades through a computerized network - 2nd largest stock exchange
National Association of Securities Dealers Automated Quotations (NASDAQ)
net pay
factors that affect a mortgage
tips for using credit wisely
15. A way to guarantee your financial protection against various risks
Pay Yourself First (PYF)
Federal Open Market Committee (FOMC)
risk
insurance
16. Carefully planned - practical - flexible - written and accessible
Securities and Exchange Commission (SEC)
tips for using credit wisely
short term debt
tips for a successful budget
17. High-priced common stocks that have been strong - profitable stocks for a long period of time.
gross pay
types of risk
blue chip stocks
Federal Deposit Insurance Corporation (FDIC)
18. 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
supply
chapter 7
things that affect loans
tips for using credit wisely
19. 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
New York Stock Exchange (NYSE)
insurance
needs
savings account
20. Items you need to survive ex: food - water
CPI's relation to inflation
reasons to invest in stocks
needs
co-signing a loan
21. 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.
emergency fund
return
Dow Jones
Law of Supply and Demand
22. Lenders must disclose all costs of credit
liquidity
certificate of deposit or CD
Truth in Lending Act
collection agency or debt collector
23. To borrow money from a bank to purchase an item and pay for it over time
Pay Yourself First (PYF)
bankruptcy
tax deferred
financing an item
24. Only responsible for the building and the property in the case of an event like fire - water damage
things that affect loans
Landlord
needs
risk
25. The total amount of an employee's earnings before deductions are taken out
gross pay
insurance
diversification
Federal Reserve System (FED)
26. Time - amount of money - rate of interest
time value of money
Annual percentage rate (APR)
interest can benefit you when...
supply
27. Taking a certain amount of all money you receive and saving it to be used for spending on longer-term goals.
needs
Pay Yourself First (PYF)
compound interest
budget
28. The money left to spend or save after taxes have been paid
time value of money
long term goals
short term goals
disposable income
29. Econoomy - interest rates - supply and demand of housing market - treasury bond rates
reasons to invest in stocks
factors that affect a mortgage
reasons not to invest in stocks
return
30. A log of the financial habits of a person who buys on credit.
compound interest
how insurance is related to risk management
needs
credit record
31. Cost of credit in the form of the interest rate charged for a full year - cost of credit expressed as a yearly percentage
needs
Annual percentage rate (APR)
budget
chapter 13
32. Allows to erase debt - must be unemployed of low income - must seek counseling - keeps only exempt property
collection agency or debt collector
Federal Deposit Insurance Corporation (FDIC)
Tenant
chapter 7
33. Items for enjoyment ex: eating out - entertainment - luxury items
dividend
Law of Supply and Demand
Truth in Lending Act
wants
34. A term that describes investments on which earnings are not taxed until retirement (ex: 401k - IRA)
net pay
Law of Supply and Demand
tax deferred
New York Stock Exchange (NYSE)
35. Regulates banks - makes short term loans to banks - conducts monetary policy
3 major credit bureaus
Tenant
Federal Reserve System (FED)
credit record
36. Debts due within the next year (ex: loans - credit cards)
short term debt
Truth in Lending Act
debit card
Tenant
37. Agree to be responsible for loan payments if the other person can't make them
Law of Supply and Demand
certificate of deposit or CD
types of risk
co-signing a loan
38. Stocks that pay low dividends - but are expected to grow
net pay
growth stocks
Law of Supply and Demand
factors that affect a mortgage
39. Goal in which you plan to prepare for and reach in the distant future - over 5 years
liquidity
collateral
New York Stock Exchange (NYSE)
long term goals
40. The money an investor receives above and beyond the sum of money initially invested
return
time value of money
gross pay
credit record
41. An indicator of stock market prices; based on the share values of 30 blue-chip stocks listed on the New York Stock Exchange
return
blue chip stocks
Truth in Lending Act
Dow Jones
42. A fixed charge for borrowing money
Tenant
interest
fixed expenses
Rule of 72
43. Enforces securities laws and regulates the securities industry
liquidity
Securities and Exchange Commission (SEC)
demand
chapter 13
44. Expenses that change from month to month
Federal Reserve System (FED)
budget
collection agency or debt collector
variable expenses
45. Using computers to carry out transfers of money
credit report
3 major credit bureaus
electronic banking
disposable income
46. Ability to convert to cash and maintain value
interest can benefit you when...
liquidity
discretionary income
Federal Deposit Insurance Corporation (FDIC)
47. Spreading out investments to reduce risk
Federal Reserve System (FED)
opportunity cost
fixed expenses
diversification
48. You owe money (ex: credit card - loan)
tax deferred
interest can benefit you when...
growth stocks
interest can be bad for you when....
49. The value of buying one item over another
needs
opportunity cost
short term goals
Federal Deposit Insurance Corporation (FDIC)
50. Protects you from the probability that injury - damage or loss will occur
how insurance is related to risk management
collateral
time value of money
interest can be bad for you when....