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






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






3. The increase in price of goods and services






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






5. 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






6. Spreading out investments to reduce risk






7. 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.






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






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






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






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






12. 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






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






14. The desire of a good or service






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






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






17. 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.


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






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






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






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






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






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






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






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






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






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






28. Pursues payments on debts owed by individuals or businesses






29. Ability to convert to cash and maintain value






30. A fixed charge for borrowing money






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






32. 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






33. Interest rates - length of time to borrow money






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






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






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






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






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






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






40. Enforces securities laws and regulates the securities industry






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






42. 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






43. The value of buying one item over another






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






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






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






47. Time - amount of money - rate of interest






48. Source of information in determining a fair price for a vehicle - new or used






49. The availability of a good or service






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